Cairn India has signed pricing contracts with a couple of state-led refining firms, which are Mangalore Refinery and Petrochemicals and Indian Oil Corporation. The cost foresees a 10-15% reduction to Brent.
The company will introduce crude production from its oil regions at Barmer in August. Peak production from the mines is totaled at 190,000bpd in opposition to 175,000 bpd estimate by the corporation. The government has sanctioned the Cairn’s modified Mangala mine growth plan comprising pipeline and better processing power of 2,05,000 bpd. The firm has mined 28 wells on the Mangala oil region.
The initial dispensation train of 30,000bpd competence was complete and the 2nd entity would be equipped by the 4th quarter of the current year. The Mangala mine is likely to achieve highest production of 125,000 bpd by the initial part of the year 2010.
Cairn is in discussions with the government officials to start production from the Mangala mine in August while the pipeline supplying the crude from its oil mines in Rajasthan to Gujarat shore would also be finished by the year’s end.