Cairn shows $1.8m/day to Rajasthan

Vol 12, PW 26 (04 Jun 09) News in Brief
     

Cairn India has made a presentation to the Rajasthan government on its readiness to produce â€کfirst’ oil from discovery block RJ-ON-90/1 in Barmer.

PETROWATCH learns that on May 29 a three-member Cairn team met state government officials at the office of chief secretary (Mrs) Kushal Singh at 12.30pm in Jaipur. Among the issues discussed, Cairn illustrated the sales tax and royalty revenue that will be generated for the state from crude sales.

“Cairn said the Rajasthan government stands to earn around Rs8.5cr/day in royalties and taxes,â€‌ we hear, “or approximately $1.8m/day, assuming $60/barrel over the field’s life.â€‌ Other officials at the two-hour meeting included the state revenue secretary, principal secretary to the chief minister, secretary to the mines department and director of the state petroleum department.

Cairn is planning â€کtrial runs’ for the crude production and trucking operation beginning tomorrow (Friday, June 5).

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