Cairn India, ONGC start crude sales through Rajasthan oil pipeline

Source: Cairn Energy

Cairn India and ONGC, the 70:30 joint venture (JV) partners in the Rajasthan block, RJ-ON-90/1, have commenced sales from the Mangala field in India through the world's longest continuously heated and insulated crude oil pipeline. 

The 590 kilometer 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. 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.

With construction lasting just 24 months, more than 6,000 people employed during the construction activity. The pipeline includes more than 700 crossings (34-major rivers, 38-canals) along the pipeline route and passes through more than 270 villages in Rajasthan and Gujarat. Additionally, the pipeline uses natural gas from Rajasthan fields to heat the crude

The pipeline has been constructed and installed in accordance with notified regulations and international best practices. The installation and Right of Usage (RoU) reinstatement has been subject to regular review by the International Finance Corporation independent auditors.

Construction work is now set to commence on the Salaya to Bhogat section of the pipeline, on the Gujarat coast with completion targeted for 2011. The pipeline, which is part of the Mangala Field Development Plan, has been approved by the Government of India.

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