Oil and Gas Industry in Rajasthan

In addition to its present areas of strength, a number of sectors are emerging with substantial potential for private investment and business. The most prominent among them are oil & gas.
The recent discovery of oil & gas reserves in Rajasthan provides a significant business opportunity to establish a number of upstream and downstream businesses in the state.
At present, the exploration activity in Rajasthan is limited to the following four blocks.
Basin Allotted to
Barmer-Sanchore Cairn Energy
Bikaner-Nagaur Essar Oil -Polish Oil & Gas Co.
Shahgarh Phoenix Overseas consortium
Bangewala area Oil India-PDVSA (Venezuela)
The area currently under exploration aggregates just 15,899 square km. This represents around 13 per cent of the area in the Rajasthan basin (aggregating around 126,000 square km). A large part of Rajasthans geographical area still remains unexplored. It is anticipated that in the upcoming rounds of bidding for exploration rights, the level of interest of global oil & gas majors should substantially increase.
oil and gas 
This bodes well for the prospects of developing the oil & gas based industry in the state in coming years. The availability of oil & gas in the state will also provide opportunities for oil refining, gas based power stations, gas distribution (including city gas distribution networks), petrochemicals and other downstream chemicals. This is expected to complement the existing industrial base of Rajasthan and also enhance the competitiveness of industries located in Rajasthan, with access to cheaper sources of energy and raw materials.


Energy Global Cairn's Investment in Rajasthan

The Scotland-based Cairn Energy Indian arm Cairn India, has recently announced two discoveries aggregating in place reserves between 580 and 1570 million barrels and invest about US$ 2 billion in the country over the next 18 months for developing oil fields and building a pipeline, which will deliver oil from Barmer in Rajasthan to the coastal areas of Gujarat.
oil and gas
The company is developing three oil fields in Rajasthan Mangala, Bhagyam and Aishwariya. While it expects to make its first oil delivery from Mangala in the second half of 2009, output from Bhagyam and Aishwariya will start in 2010.