Cairn gets nod to lay key crude pipeline
Cairn India has received the government’s nod for laying a pipeline from Rajasthan oil fields to the Gujarat coast to evacuate crude oil.
By TNN |
NEW DELHI: Cairn India has received the government’s nod for laying a pipeline from Rajasthan oil fields to the Gujarat coast to evacuate crude oil. The proposed routing of the pipeline will allow Cairn access to the existing pipeline infrastructure and refinery network with a final coastal delivery point. Armed with the approval, the company is all set to pump crude oil from 2009.
While making an announcement in the UK, Cairn Energy CEO Bill Gammell said the approval of the government has now been received to grant the right of use (RoU), allowing Cairn India and ONGC to secure access to the land to build the pipeline from Rajasthan. Cairn India has 70% interest in the field while ONGC holds balance 30%.
“The critical path process for securing access to the land to build the pipeline from Rajasthan has started. Consequently, first oil from Mangala remains on course for 2009,” Mr Gammell, who is also chairman of Cairn India, said. By 2009-end, Cairn proposed to produce 100,000 barrels of oil per day from the Rajasthan fields. The production will reach the plateau of 150,000 barrels per day in 2010.
Cairn India and ONGC have agreed to an oil export solution (exporting to refineries in other states within the country). “This proposal has been sent to the government for approval, after which it will be submitted to the RJ-ON-90/1 (the Rajasthan oil block) management committee,” he said.
“The proposal is to expand the Mangala field development plan (FDP) to include an oil export pipeline, which will transport the Rajasthan crude from Mangala to a coastal location in Gujarat,” he added.
Stating that the government has agreed to grant RoU for the pipeline, Mr Gammell said: “In order to meet the projected schedule, the front end engineering and design (FEED) has already been completed and the procurement process for several long lead items has commenced.”
While making an announcement in the UK, Cairn Energy CEO Bill Gammell said the approval of the government has now been received to grant the right of use (RoU), allowing Cairn India and ONGC to secure access to the land to build the pipeline from Rajasthan. Cairn India has 70% interest in the field while ONGC holds balance 30%.
“The critical path process for securing access to the land to build the pipeline from Rajasthan has started. Consequently, first oil from Mangala remains on course for 2009,” Mr Gammell, who is also chairman of Cairn India, said. By 2009-end, Cairn proposed to produce 100,000 barrels of oil per day from the Rajasthan fields. The production will reach the plateau of 150,000 barrels per day in 2010.
Cairn India and ONGC have agreed to an oil export solution (exporting to refineries in other states within the country). “This proposal has been sent to the government for approval, after which it will be submitted to the RJ-ON-90/1 (the Rajasthan oil block) management committee,” he said.
“The proposal is to expand the Mangala field development plan (FDP) to include an oil export pipeline, which will transport the Rajasthan crude from Mangala to a coastal location in Gujarat,” he added.
Stating that the government has agreed to grant RoU for the pipeline, Mr Gammell said: “In order to meet the projected schedule, the front end engineering and design (FEED) has already been completed and the procurement process for several long lead items has commenced.”
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