Cairn set for Mangala production

Vol 13, PW 6 (27 Aug 09) News in Brief
     

Cairn India is laying the groundwork to inaugurate first Mangala production in Rajasthan, now confirmed for (Saturday) August 29.

Attending journalists have been asked to provide personal information amid heightened security following confirmation that Prime Minister Manmohan Singh has agreed to Cairn’s request to attend, as will oil minister Murli Deora. In an upbeat announcement to shareholders on August 26, Cairn Energy (UK), which holds 65% of Cairn India, said most pieces of the jigsaw were in place to enable first production to begin.

“Pricing has been agreed with IOC and MRPL for the initial volumes of oil to be trucked for delivery to local refineries,â€‌ says Cairn. “The pricing formula currently equates to an approximate 10-15% discount to Brent on the basis of prevailing prices from January to June 2009.

â€‌ Cairn adds that planned facilities at Mangala will include the phased construction of four processing trains with a production capacity of 205,000 b/d.

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