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Cairn warns of Rajasthan delay
Cairn India Ltd, which is all set to deliver first oil from its Rajasthan oil fields, Mangala, by May end 2009, said on Friday that the production may get delayed if its partner ONGC backtracks on its investments from the project.
Cairn India Ltd, which is all set to deliver first oil from its Rajasthan oil fields, Mangala, by May end 2009, said on Friday that the production may get delayed if its partner ONGC backtracks on its investments from the project.
ONGC holds a 30 per cent stake in the Rajasthan block. It has written to the government seeking to exit from the Rajasthan oil fields as it has found the project economically unviable. It says the heavy statutory levies (which includes royalty and cess) that it will have to bear would make Rajasthan too expensive.
The Cairn spokesperson said, "Our facilities will be ready in order for us to start production by end of May, subject to partner (ONGC) and government approvals and finalisation of crude sales agreements with the buyers."
