Indian state-owned oil company the Oil and Natural Gas Corporation (ONGC) has approved a $560 million project to boost oil recovery at the Rajasthan oilfields in Northwest India.
“Our board earlier this week approved the Enhanced Oil Recovery (EOR) project for Rajasthan fields,” ONGC Chairman and Managing Director Sudhir Vasudeva told India’s Economic Times Thursday.
The proposal will now be submitted for approval to India’s oil regulator, the Directorate General of Hydrocarbons.
The field operator of the Rajasthan block, Cairn India, submitted a draft EOR plan back in June 2012 to the Indian authorities for the Mangala oilfield.
Mangala produced the largest find among the 26 other Cairn has made in the Barmer district block.
Vasudeva said funds will be used for drilling additional wells and other works.
The project cost will be shared between Cairn India (70%) and ONGC (30%).