Cairn India will start manufacturing crude oil from its productive Rajasthan fields by May-end if it gets sanction from associate ONGC for field reserves and if the Government is able to discover purchasers for the oil.
Although Rajasthan fields will assist India reduce its oil imports, Oil and Natural Gas Corporation has not yet sanctioned the modified growth plan for the Barmer fields.
On the other hand, Government has found purchasers for lower than one-third of the firm’s planned highest production.
Government would sanction the investment in Rajasthan fields only when ONGC consents the modified field progress price of $ 2.4 billion.
The Government has got purchasers in Hindustan Petroleum, Indian Oil and Mangalore Refinery for just 2.4 million tonnes of the 8.75 million tonnes highest production designed by Cairn. It will generate 1.5 million tonnes in 2009-10 but the 3 companies intend to take not over 0.7 million tonnes.
The production would increase to 7 million tonnes but IOC states that it could take a highest of 1.5 million tonnes whereas HPCL and MRPL would take 0.5 and 0.4 million tonnes, correspondingly. ONGC owns 30% in the fields where Cairn is the worker with 70%.
Cairn India owns a 70% stake and is the worker of the Rajasthan block. ONGC is its associate with a 30% stake.