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Reliance,Essar keen to buy Cairn crude

Reliance Industries and Essar Oil are keen on buying crude oil from Cairn India's Rajasthan fields.

Written by Agencies | New Delhi | March 17, 2009 2:38:26 pm

Reliance Industries and Essar Oil are keen on buying crude oil from Cairn India’s Rajasthan fields even as the Petroleum Ministry struggles to find takers of the nation’s most prolific oil discovery among public sector firms.

Peak output of 1,75,000 barrels per day (8.75 million tonnes a year) from the Mangala,Bhagyam and Aishwariya fields in Rajasthan block is to first go to state refiners but Oil Ministry managed to get buyers for just one-third even though oil production is to start next month,industry sources said.

Indian Oil Corporation is willing to take 20,000 bpd (one million tonnes) at its Panipat refinery in Haryana and another 0.5 million tonnes at Koyali unit in Gujarat once a delayed coker is installed at the refinery.

Mangalore Refinery,a unit of Oil and Natural Gas Corp (ONGC) which is is the official offtaker of Rajasthan crude,wants only 1.2 million tonnes while Hindustan Petroleum says it can take another 0.5 million tonnes at its Vizag unit.

Sources said while PSUs are vary of taking the “waxy crude” that turns solid at normal temperature,private firms have written to Oil Ministry for substantial allocations.

RIL wants 30,000 to 60,000 bpd (1.5-3 million tonnes) of Cairn crude at each for its two refineries at Jamnagar in Gujarat while Essar Oil has written for 30,000 bpd this year and 1,20,000 bpd (6 million tonnes) by 2011 when it expands its Vadinar refinery in Jamnagar district.

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