IOC, HPCL, MRPL To Purchase Oil From Cairn India's Rajasthan Fields

Published: 06-Aug-2009

By: Staff Writer Staff Writer Staff Writer

Indian government has selected Indian Oil Corporation Limited (IOC), Hindustan Petroleum Corporation Limited (HPCL) and Mangalore Refinery and Petrochemicals Limited (MRPL) to buy crude oil from Cairn India Limited's (Cairn India) Rajasthan fields, Press Trust of India reported. IOC and MRPL will buy 0.2 million tonnes each in 2009-10, while HPCL will get 0.3 million tonnes of Rajasthan crude.

In 2010-11, IOC will purchase 1.5 million tonnes while MRPL will buy 0.40 million tonnes, which is double its offtake. HPCL will purchase 0.50 million tonnes during the same period.

"The allocation of crude beyond the quantities of crude indicated above will be made after ascertaining the capacity of other public sector refineries to absorb the quality of crude produced from this oil field," Minister of State for Petroleum and Natural Gas Jitin Prasada said.

Earlier, Cairn India said it will be ready to begin crude oil production from the Rajasthan fields in August 2009 and has completed price discussions with the government appointed offtakers.

Cairn India's Chief Executive Officer, Rahul Dhir said that pricing discussions for the primaty offtake of Rajasthan crude have been concluded with IOC and MRPL.

"We have concluded pricing negotiations with MRPL and IOC for the initial quantities of crude from Rajasthan which currently represents a 10 to 15 per cent discount to Brent."

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