Cairn India commences crude oil sales from Mangla

Cairn India and ONGC, the 70:30 joint venture (JV) partners in the Rajasthan block, RJ-ON-90/1, have commenced sales through the world's longest continuously heated and insulated crude oil pipeline. The 590 km long Barmer to Salaya section of the Barmer to Bhogat pipeline (670 km) is now operational with oil supplies having commenced to the private refineries from the delivery point at Salaya. The sale of crude to IOC through the pipeline is also expected to commence soon. The 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. The company made this announcement on 15 June 2010.