Cairn needs $1bn loan for RJ-ON-90/1

Vol 10, PW 3 (01 Jun 06) News in Brief

Cairn Energy is negotiating a $1bn bank loan to finance the development of its discoveries in Rajasthan exploration block RJ-ON-90/1.

Cairn said in a statement on 30th May that it is finalising a $1bn bank facility to finance its share of the northern (Rajasthan) fields development project. Cairn said it intends to complete all the paperwork for the bank loan before the end of next month.

Cairn adds the DGH has approved the field development plan for four discoveries in RJ-ON-90/1: Mangala, Aishwariya, Saraswati and Raageshwari. Cairn said Management Committee (DGH, ONGC and Cairn) approval of the plan follows earlier agreement at the joint venture Operating Committee meeting between ONGC and Cairn.

Work can now begin to produce oil from the Rajasthan discoveries, which are billed as the biggest onland oil finds in India since ONGC discovered Gandhar two decades ago.

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