The government has selected Hindustan Petroleum Corp, Indian Oil Corp and Mangalore Refinery and Petrochemicals to buy crude oil from Cairn India’s Rajasthan mines.
IOC would purchase 1.5mt of the crude oil from the country’s most productive oil breakthrough in over 2 decades in 2010-11, whereas MRPL would double its offtake to 0.40mt.
HPCL would obtain 0.50mt next economic year.
Reportedly, Cairn India would be all set to begin crude oil construction from the Rajasthan mines in August and has finished cost discussions with the government selected off takers.
Rajasthan is the biggest on land oil mine explored in over 2 decades and will have a highest production of 8.75mt, giving 1/5th of the country’s existing oil production.
Reportedly, Cairn India’s Rajasthan oil mines will decrease nation’s oil import bill by 7%.