• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, May1 The wait is finally over for Cairn India with the Government on Wednesday giving its nod for shifting of the delivery point of crude oil from the field in Barmer, Rajasthan, to Salaya on the Gujarat coast.

In a statement issued here, the company said that the Ministry of Petroleum and Natural Gas has conveyed its agreement to shift the delivery point for its Rajasthan oil from RJ-ON-90/1.

The need for a pipeline came when the official nominee to offtake the Rajasthan crude, Mangalore Refinery & Petrochemicals Ltd (MRPL), said it can take only 1-1.2 million tonne (mt) out of the 7.5-mt output planned from the field.

Oil field development work in Rajasthan has already started, the company said. The integrated upstream and midstream development is on course to produce the first oil from Mangala in the second half of 2009.

All major civil and construction contracts have been awarded and long lead time items have been procured, Cairn said.

The Chief Executive Officer of Cairn India, Mr Rahul Dhir, said, “This is a very positive development for the project. Along with our joint venture partner ONGC we have already invested more than $1 billion in Rajasthan and plan to invest an additional $2.6 billion in the development over the next two years.”

Cairn made a major oil discovery (Mangala) in Rajasthan in early 2004. More than 20 discoveries have been made in the Rajasthan block.

The main development area (1,858 km2), which includes Mangala, Aishwariya, Saraswati and Raageshwari, is shared between Cairn India and ONGC, with Cairn holding 70 per cent and ONGC having exercised its back in right for 30 per cent.

A further Development Area (430 km2), including the Bhagyam and Shakti fields, is also shared between Cairn India and ONGC in the same proportion.

Cairn and ONGC (30 per cent stakeholder) will lay a 585-km pipeline to the new sale point and include this cost in the field development cost that is recoverable from sale of oil.

More Stories on : Petroleum | Policy | Cairn India Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
No respite

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line