Project Today reported that the Indian government is likely to allow Cairn India to export crude oil from its Rajasthan fields as the government has failed to find buyers. The company is likely to start commercial production of crude oil from the blocks during April 2009.
According to the Production Sharing Contract for the Rajasthan block, the government is obliged to find buyers for the crude and ensure that the operator gets international price.
The prospective buyers which include Indian Oil, Hindustan Petroleum Corporation and Mangalore Refinery are likely to buy only 2.4 million tonne of the 8.75 million tonne peak output planned by Cairn India by 2011. Therefore, the government is considering an export option so that Cairn's Rajasthan crude gets a better price.
The Mangala field is expected to produce 30,000 bpd by the second quarter of 2009-10. The adjacent Bhagyam field is likely to produce 40,000 bpd and Aishwariya another 20,000 bpd. The peak production of 175,000 bpd or 8.75 million tonne is expected to be reached by 2011.
Source : Project Today