Cairn Receives Govt. Approval To Lay Pipeline Network
New Delhi: Cairn India has received government’s authorization for laying a pipeline from Rajasthan oil fields to the Gujarat coast to evacuate crude oil.
The planned routing of the pipeline will permit Cairn access to the surviving pipeline infrastructure and refinery system with a final coastal delivery point. Armed with the government sanction, the company is ready to pump crude oil from 2009.
While making a declaration in the UK, Cairn Energy CEO, Bill Gammell stated the authorization of the administration has now been obtained to allow the right of use (RoU), permitting Cairn India and ONGC to guarantee access to the land to fabricate the pipeline from Rajasthan.
Cairn India possesses 70% interest in the field whereas ONGC holds the remaining 30%.
Mr. Gammell, Chairman, Cairn India, said, “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.”
Cairn projected to make 100,000 barrels of oil each day from the Rajasthan fields by 2009-end. The production capacity will further increased to 150,000 barrels per day by 2010.
Cairn India and ONGC have agreed to an oil export solution (exporting to refineries in other states within the country).
Mr. Gammell said, “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.”
“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 administration has decided to allot 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.”