Edinburgh-based oil and gas company Cairn Energy has said that its Mangala project in the Indian state of Rajasthan will commence this week, which, along with its Bhagyam and Aishwariya project, will net Cairn a plateau production of 175,000bopd.

The announcement comes following the announcement that the group’s revenues had decreased in the first half of this year and that its export pipeline from the field could face delays.

In the first half of this year the group’s oil and gas revenues were down from $181m to $81m as a result of natural decline in gross production levels from the production fields, along with lower realised prices.

Average entitlement production declined by 17% to 11,573boepd compared with 13,886boepd last year, while the average price realised fell by almost half to $38.68, Cairn said.

Cairn CEO Sir Bill Gammell said Mangala will, however, be a big milestone for the group.

“We believe there is substantial scope for further growth from the existing fields, from enhanced oil recovery and the expansion of the resource base,” Gammell said.

The company plans to drill an exploration well at its multibillion-barrel resource in Greenland within the next two years.