The Hindu Business Line : Rajasthan crude similar to Indonesian varieties, says Cairn

New Delhi, Jan. 12 Cairn India Ltd on Monday indicated that specifications of its crude to be produced from Rajasthan fields are similar to that of Indonesian crude varieties.

While declining to give any numbers on the benchmark price from Cairn’s Rajasthan find, Mr Rahul Dhir, Chief Executive Officer and Managing Director, Cairn India, said, “in terms of chemistry, the crude is closest to Indonesian crude, but the benchmarking of the price would happen once the Government has appointed refiners that would buy the crude.”

He was speaking to news persons at the sidelines of the Petrotech 2009 conference here.

The company plans to produce crude in the second half of 2009. Cairn’s Rajasthan crude is a low sulphur (sweet), waxy crude with medium API gravity of 27.41.

“Pricing has to be based on the value of crude, which is driven by the chemistry of crude. Rajasthan crude is low sulphur, medium grade crude,” he said, adding that “crude price has to be very precise to the value or products it turns out.”

Transport pipeline

As regards the pipeline to transport the crude, he said that Cairn and ONGC (which has 30 per cent stake) are laying the pipeline. “The pipeline will be done in time for the oil production that is to start in the second half of 2009,” he said.

Once production begins, the peak output may be 1,75,000 barrels a day, he said. The company has planned an investment of $2 billion and plans to produce 1 lakh barrels a day by the end of 2009, Mr Dhir said.

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