NEW DELHI: The government is mulling allowing Cairn India to export crude oil from the Rajasthan fields, having found buyers of even less than one-third of the company's planned peak output from the blocks. The Government has found in IndianOil, Hindust an Petroleum and Mangalore Refinery buyers of only 2.4 million tonnes of the 8.75 million tonnes peak output planned by Cairn India by 2011, a Petroleum Ministry official said.
Cairn has said it will be ready to produce crude oil from its Rajasthan fields this month with output seen at 1.5 million tonnes in the fiscal 2009-10. “IOC wants just 0.3 million tons while HPCL and MRPL would take 0.2 million tons each,'' said the off icial. “Next fiscal when production rises to 3.5 million tons, IOC wants 1.5 million tons, HPCL 0.5 million tons and MRPL 0.4 million tons.'' IOC is seeking a discount of $21 a barrel on internationally traded price of Brent crude while HPCL and MRPL wa nt a $11 per barrel discount, impacting Government revenues from the project.
Source : Business Line