Cairn India, the UK-based Cairn Energy's subsidiary, which has commenced test runs of its wells in Barmer district, Rajasthan, will likely begin commercial production of crude oil by the end of May, after the approval of the $2.4 billion development cost from its field investments' partner ONGC, and demand from prospective buyers.

Cairn India is the operator of the Rajasthan block of the refineries, and holds a 70 percent stake, with ONGC holding a 30 percent stake.

Talking about Cairn's initiation of the test runs, V K Sibal - Director General of Directorate General of Hydrocarbon - said: "Cairn has already started production from its
60-odd wells. It is a test production and they are expected to start commercial production by May end."

According to a statement by a Cairn spokesman, the facilities are set to begin production by this month's end, "subject to partner ONGC and Government approvals, and finalization of crude sales agreements with Government nominees."

Speaking in terms of production figures, Petroleum Secretary R S Panday said that though the production is expected to begin with small capacity, it will likely reach its peak production of 8.5 million tonnes in the next year and a half. However, thus far the Government has been able to find buyers, like Hindustan Petroleum, Indian Oil, and Mangalore Refinery, for merely 2.4 million tonnes.