RIL becomes 1st private firm to buy Cairn crude
Mukesh Ambani’s Reliance Industries Ltd is going to be the first private refiner in the country to process domestic crude, with the company entering into an initial agreement to buy oil from Cairn’s fields at Barmer in Rajasthan. The deal comes within a week of the UK explorer’s Indian arm getting government nod to sell crude to private refiners.
Though Cairn did not disclose the volumes agreed upon, sources said the company will sell seven parcels of 200,000 barrels each, totalling 1.4 million barrels, this year. Crude will be transported in heated trucks and the first parcel will reach Reliance’s Jamnagar refining complex by the third week of November.
Relinace will pay the same price as agreed between Cairn and government-nominated buyers such as ONGC subsidiary MRPL, IndianOil and Hindustan Petroleum. “The implied price realisation represents an average 10-15% discount to Brent (crude) on the basis of prices prevailing for the six months to September 2009,” Cairn said in a statement on Wednesday. Read more
Cairn India Limited (consolidated) Third Quarter Results 2008
The following commentary is provided in respect of the unaudited financial results and operational achievements of Cairn India Limited and its subsidiary companies (referred to collectively as “Cairn India”) during the third quarter of 2008.
OPERATIONAL
- Development of the Mangala field in Rajasthan, on track with adequate liquidity in place to deliver first oil in H2 2009
- Revised Mangala Field Development Plan (FDP) submitted and represents a 30% increase in 2P reserves and an increase in peak off take to 125,000 barrels of oil per day( bopd )
-Two custom built rigs deployed for development drilling in Rajasthan and ongoing exploration
-Four appraisal/exploration wells planned for Q4 2008 in Rajasthan and Bihar
- Exploration licence to explore for oil and natural gas in the Mannar Basin awarded by the Government of Sri Lanka
-Gross operated production for Q3 2008 was 65,566 barrels of oil equivalent per day (boepd) (working interest 17,111 boepd)