Mangala sales commence as pipeline comes on stream
Cairn India and its joint venture partner ONGC in the Rajasthan block, RJ-ON-90/1, have commenced sales of crude through the world’s longest continuously heated and insulated crude oil pipeline which deleivers crude at Salaya in Gujarat which is at the distance of 590 kilometers.
The first stretch of 670 kilometer Barmer-Bhogat pipeline has now commenced commercial operation with the sale to private refinearies, informed press communiqué issued by the Cairn India. The sale of crude to IOC through the pipeline is also expected to commence soon. Production is currently 60,000 barrels of oil per day (bopd).
The completion of the pipeline and related infrastructure allows the JV to sell crude to the refineries in order to gradually increase both production and sales. Pipeline sales are expected to reach 125,000 bopd in the second half of calendar year 2010 and sales arrangements with four buyers are now being put in place for 143,000 bopd.
Cairn, at present, trucks crude to Jamnagar for sale to RIL and to Kandla for onward shipment to the Mangalore Refinery. The pipeline would help bringing down the transportation cost from US $6 to US $7 per barrel to about US $1 per barrel.
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