PTI reported that Cairn India will begin laying a USD 800 million pipeline to evacuate crude oil from its Rajasthan fields, peak output from where is now seen at 175,000 barrels per day, 17% more than the previous estimate.

Cairn India has awarded the pipeline laying contract to Larsen & Toubro, who is to complete the job in 6 to 9 months time, in sink with the company's oil production plans.

The heated pipeline for transporting crude oil from the Rajasthan fields will begin at Mangala terminal to Salaya oil export terminal near Jamnagar in Gujarat. Crude oil production from the Rajasthan fields is to begin in second half of 2009 even as estimates for peak output have been raised by about 17%.

Sources said Mangala, the largest field in the RJ-ON-90/1 block, was previously envisaged to produce 100,000 barrels per day but discovery of additional reserves has raised the output to 125,000 barrels per day. Bhagyam, the second biggest field, will produce 40,000 barrels per day and Aishwariya 10,000 barrels per day, totaling to 175,000 barrels per day.

Sources said the government has approved shifting of the crude oil delivery point from the Rajasthan field flange to Salaya in Gujarat and including the cost of laying the 585 kilometers long pipeline from Barmer to the new sale point in the field development cost that would be recovered by Cairn from sale of oil.