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Tuesday, 02 December, 2008, 20:40 GMT | more >>

Cairn to stump up for Indian pipeline



By Upstream staff 

UK-based explorer Cairn Energy said today its Indian unit is prepared to pay most of the costs of building a pipeline to tranport crude from its Rajasthan fields.

The announcement comes after uncertainty about who would pay for the pipeline put a question over whether the fields could be developed on time.

"It is proposed that the pipeline will fall within the definition of the field development activities and will accordingly be funded 70% by Cairn India and 30% by Oil & Natural Gas Corporation (ONGC)," the company said in a statement.

Meanwhile, the Edinburgh-based player booked a loss of $82 million in 2006 after recording a profit of $79.1 million a year earlier, mainly due to the exceptional oil and gas writedown of $71.5 million as a result of the downward reserves revision on Sangu.

"If you believe oil prices are likely to stay in the $50 plus range, when we go on production (in Rajasthan) in 2009, we'll predominantly be highly geared to the oil price going forward," company boss Bill Gammell said in a statement.


Tuesday, 27 March, 2007, 06:39 GMT  | last updated: Tuesday, 27 March, 2007, 07:46 GMT

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