Cairn crude in pipeline

Vol 13, PW 14 (17 Dec 09) News in Brief

Cairn India is gearing up to begin first crude oil supplies to IndianOil through a pipeline from Barmer.

PETROWATCH learns that by the second week of January Cairn will begin pumping between 5000 b/d and 10,000 b/d from the Mangala Processing Terminal into a 200-km stretch from Barmer to Radhanpur in Gujarat. “Radhanpur is a â€کnodal point’ into IOC’s pipeline network,â€‌ we hear.

“From Radhanpur the crude will pass into other IOC pipelines.â€‌ Cairn presently trucks out around 20,000 b/d from Barmer for Reliance and MRPL, pending completion of the 591-km pipeline to Salaya.

“As volumes into the pipeline go up, the trucking operation will gradually diminish,â€‌ adds a source. “In a matter of weeks the whole pipeline will be laid; only 10-km remains to be â€کtrenched’.

â€‌ By mid-2010, Cairn expects production from its Barmer fields to touch 130,000 b/d but hasn’t yet formally disclosed how it will be divided among buyers MRPL, IOC and Reliance.