Cairn India to start oil production this month

August 20th, 2009 - 9:58 pm ICT by IANS  

New Delhi, Aug 20 (IANS) Cairn India Thursday said it will start crude oil production from its fields in Rajasthan later this month and expects to hold cost at $5 per barrel.
In a statement issued by the company, Chief Executive Officer Rahul Dhir said the initial output will be 30,000 barrels per day, which will be increased by another 50,000 barrels by the year-end.

Cairn India holds a 70 percent stake in RJ-ON-90/1 block and the state-run Oil & Natural Gas Corporation (ONGC) holds the rest.

“We intend to keep our costs low and see the production cost at about $3.5 per barrel. The transportation cost will be another $1.5 (per barrel),” Dhir said in a statement.

The company has already negotiated with Indian Oil Corporation and ONGC’s Mangalore refinery to process the crude.

Last month, Cairn India reported a 67 percent drop in profit for the June quarter.

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