Cairn wants PM for first Mangala oil

Vol 13, PW 1 (18 Jun 09) News in Brief

Cairn India is trying hard to get Prime Minister Manmohan Singh to cut the ribbon during a planned ceremony to mark the start of first oil production from its Rajasthan discoveries.

“Cairn wants to get the prime minister to inaugurate the facility,â€‌ says an industry source. “Cairn has been trying to get the PM to attend for a long time.

â€‌ Aside from the prestige of having the PM on side, another reason is more practical. Unresolved sales tax and VAT issues with the Rajasthan state government continue to overshadow first production and senior Cairn executives hope to use the occasion to explain the problem directly to the PM.

“The PM can resolve this issue within seconds if he is properly briefed,â€‌ reveals a source. “But for that someone needs to talk to him about it, to explain the problems.

â€‌ Cairn CEO Rahul Dhir, we hear, would be perfect for the occasion. First production, expected sometime in July, will be restricted to 30,000 b/d until an insulated pipeline is laid to Bhogat.