India's domestic crude oil production falls 1.2 %

Domestic crude oil production in the country declined by 1.2 % in HI FY 10 as against the corresponding period a year ago on account of a fall in output by oil exploration and production major, ONGC, an economic think-tank said in its report.
"Domestic crude oil production fell by 1.2 % to 166 lakh tons in the first half of 2009-10 as compared to a year ago. A fall in oil output by ONGC dragged down the production," Centre for Monitoring India Economy (CMIE) said in its latest report on the state of Indian economy.

State-run ONGC accounts for two-thirds of domestic oil production.
"ONGC recorded a 3.7 % decline in production to 123.7 lakh tons, largely due to a natural decline in its output from its maturing oil fields," the report said. The report, however, sounded optimistic for the remaining part of the current fiscal and forecast an upward trend in the oil output on the back of production from Cairn India's Mangala oilfields.

"In the second-half of 2009-10, we expect oil output toaccelerate. Production from Cairn India's Mangala Oilfield will contribute to this growth," CMIE said.
Oil production from Rajasthan's Mangala field, which promises to provide almost 25 % of India's domestic crude production, has already touched the 20,000 bpd mark.