The Hindu Business Line : Cairn India hits new high on record oil price

Mumbai, May 7 Cairn India shares moved up to a new high on Wednesday, gaining 7.5 per cent, spurred by the rise in the international crude price, that touched a record high of $122 per barrel.

Supply-related worries

The company’s share price closed at Rs 278.45, up by Rs 19.35 on the BSE, after touching intra-day high of Rs 283.70 on the NSE and Rs 283.50 on the BSE.

The stock has moved up by 22.10 per cent over the last one month on the BSE, keeping pace with the rise in the international crude prices.

The crude prices in the international market moved up from around $105-106 per barrel a month ago to over $122 per barrel on Wednesday.

The prices rose sharply as a result of supply-related worries due to tension building up in Iran and militant attacks on Nigerian oil establishments.

In the London Stock Exchange, the parent company Cairn Energy’s price too went up sharply by 2.89 per cent at 7 pm IST.

Cairn India made a major oil discovery in Rajasthan in 2004, which has been named ‘Mangala’, and now it has more than 20 discoveries in the same region. The commercial productions in the Mangala oil fields are expected to begin in the second half of 2009.

The Rajasthan discoveries by Cairn India are the largest inland oil discoveries by any company in India since 1985. It has also developed Ravva oil field on the East coast, where the oil and gas production has already begun. As per the latest information provided by the company, the Ravva oil field production was 58,761 barrel equivalent of oil per day(BOEPD).

On the West coast in the Cambay basin, the company’s production was of 12,006 BOEPD.

Meanwhile, the price of the other oil exploration and producing companies saw slow movement. Reliance Industries went up by one per cent and ONGC closed almost flat with dip of just 0.39 per cent.

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