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Govt may allow Cairn to sell Rajasthan crude to pvt refiners

Last Updated: Saturday, August 29, 2009 - 18:37

Barmer (Rajasthan): The government may allow private refiners like Reliance Industries Ltd, Essar Oil to buy Cairn India`s Rajasthan crude, if the public sector firms do not buy the entire output from the field.

Cairn CEO Rahur Dhir said, "As we ramp up production, the government will be able to nominate buyers."

The government has nominated buyers for Cairn`s initial production for next few months and when the Mangla oil field reaches peak output of 1,25,000 bpd more buyers will be nominated.

"We have not curtailed production because of lack of buyers," Dhir added.

IOC and MRPL have been allocated 0.20 million tonnes each in 2009-10, while HPCL would offtake 0.30 million tonnes of Rajasthan crude.

But in the next fiscal, the offtake by the state refiner would be far less than the production from Rajasthan.

In 2010-11, IOC would buy 1.5 million tonnes of the crude, while MRPL would double its offtake to 0.40 million tonnes. HPCL would take 0.50 million tonnes next fiscal.

Against the total committed offtake of 2.4 million tones, the
output would be over 6.2 million tonnes.

DGH Director General VK Sibal said selling to private
refiners has been recommended.

"We have agreed that they (Cairn) can sell to private
refineries," Sibal said.

RIL and Essar Oil have both have sought between 30,000
bpd to 60,000 bpd of cairn crude each for processing at their
refineries in Gujarat.

A pipeline being laid to take the Barmer crude to Gujarat
coast passing very close to the two companies refineries in
Jamnagar in Gujarat.

Mangala field will hit peak output of 1,25,000 bpd (6.25
million tonnes) in the first half of 2010 and together with
Bhagyam and Aishwarya, the production will top 1,75,000 bpd
(8.75 million tonnes a year) in 2011.

Bureau Report

First Published: Saturday, August 29, 2009 - 18:37
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