Cairn India’s third-quarter financials will take a hit due to a steep fall in crude oil prices. The company's numbers are expected later today.
Cairn sells its Rajasthan crude at a discount to Brent. For the third quarter of the current fiscal, the company is set to have sold it at 10 per cent discount.
In the October-December quarter of the current fiscal, Brent averaged $76.58 a barrel. From the previous sequential quarter (July-September 2014), Brent has fallen by almost $25.35 a barrel.
Cairn’s maximum revenues come from Rajasthan’s oil fields. At 12.52PM IST, Cairn India’s shares were trading 1.43 per cent lower at ₹ 234.65 on the BSE.
Rajasthan is essentially an oil producing field but Cairn and its joint venture partner ONGC are also betting on gas prospects from the area. The joint venture is leaving no stone unturned to exploit the full resource base of 300,000 barrels of oil equivalent per day from its Barmer block.
In fact, Cairn has successfully conducted roadshows in Calgary (Canada) and Houston (US) to tap into the oil field services companies, offering technology and technical solutions.
Calgary and Houston are major hubs for oil field services companies that have taken significant strides in providing oil field technical solutions.