Cairn India, the Indian arm of the UK-based energy major, will soon start production from its Barmer block find in Rajasthan. However, the pipeline is not ready yet and customers have to wait for some time to get gas from the fields through pipelines.

Rahul Dhir, CEO, Cairn India, said, "We are ready to produce immediately. Commercial agreements have been done. But we cannot put a precise production date." The company also has oil wells at Ravva field off the coast of Andhra Pradesh.

Cairn's Mangala Processing Terminal in Barmer has capacity to produce 30,000 barrels a day of oil and hopes to produce further 100,000 barrels per day in the first half of 2010.
Bill Gammell, non-executive chairman of Cairn India, at the annual general meet of the company said, "We believe there is potential to extend and also enhance peak plateau production from the resource base of the Rajasthan fields above the level of 175,000 bpd."

Initially, the firm will use trucks to transport oil till the completion of crude oil pipeline by December 2009. However, oil production for the second phase and supply is likely to be impacted due to extreme weather and low rains in Rajasthan.

Shares of the oil firm surged 0.91 per cent and closed at Rs 238.95 on the Bombay Stock Exchange.