Search: Look for:   Last 1 Month   Last 6 Months   All time
Home :: World

Cairn India "on track" to deliver crude oil from Rajasthan

Tue, 01 Jan 2008 ANI

London, Aug 27 (ANI): Cairn India, a subsidiary of the UK-based Cairn Energy, may produce up to 71 per cent more oil from the Rajasthan field and is close to securing the credit lines that will ensure sufficient funding is in place to start production next year.

 

The Rajasthan field is the largest oil find in the country after Oil and Natural Gas Corporation's (ONGC) Bombay High discovery in 1974. ONGC holds 30 per cent in the block.

 

Chief Executive Sir Bill Gammell said the company "is on track to deliver crude oil from Rajasthan in the second half of 2009."

 

This is despite his acknowledgment that "recent developments in the financial markets may impact the group's ability to raise the necessary credit facilities to complete work programmes," The Telegraph reported.

 

Cairn expects to foot 1.82billion dollar of the 2.6billion dollar bill for developing the field and building a pipeline, with the remainder coming from its partner, India's state oil company ONGC.

 

Cairn will meet the cost through cash on its balance sheet, which stood at 1.18 billion dollar at the half year, and debt. Last week, Cairn signed a commitment with its five lending banks to increase its 840million dollar facility to 1.4 billion dollar.

 

The Rajasthan field, which has the potential to provide India with a fifth of its oil production, is thought to contain at least a billion barrels and to be able to produce 175,000 barrels a day at its peak. Assuming an oil price of 100 dollar, it will generate cash of about 3 billion dollar a year. (ANI)

 


LATEST IMAGES
Manohar Lal being presented with a memento
Manoj Tiwari BJP Relief meets the family members of late Ankit Sharma
Haryana CM Manohar Lal congratulate former Deputy PM Lal Krishna Advani on his 92nd birthday
King of Bhutan, the Bhutan Queen and Crown Prince meeting the PM Modi
PM Narendra Modi welcomes the King of Bhutan
Post comments:
Your Name (*) :
Your Email :
Your Phone :
Your Comment (*):
  Reload Image
 
 

Comments:


 

OTHER TOP STORIES


Excellent Hair Fall Treatment
Careers | Privacy Policy | Feedback | About Us | Contact Us | | Latest News
Copyright © 2015 NEWS TRACK India All rights reserved.