By IANS,
New Delhi : Cairn India Tuesday announced start of sales of crude from its Rajasthan fields through the world’s largest heated and insulated pipeline.
A press release issued Tuesday by Cairn India and the Oil and Natural Gas Corporation (ONGC), who are majority and minority partners in Mangala field development, said operations have commenced on the pipeline to send crude to the private refineries through delivery point of Salaya.
“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,” it said.
The completed pipeline – from Barmer to Bhogat – will be 670 km long, and is due to be done by 2011. Currently, a 590-km stretch from Barmer to Salaya is operational.
“Sale of crude to Indian Oil Corporation through the pipeline is also expected to commence soon,” said the press release.
It added that completion of pipeline and related infrastructure will allow the Cairn-ONGC joint venture to sell crude to the refineries in order to gradually increase both production and sales.
Current production is 60,000 barrels of oil per day, but pipeline sales are expected to reach 125,000 bopd by end of 2010.
“Sales arrangements with four buyers are now being put in place for 143,000 bopd,” said the press release.
ONGC director (offshore) Sudhir Vasudeva described the commission of the crude oil pipeline as a “technological marvel”.
“It has taken 24 months to link this key piece of infrastructure from Rajasthan to the refineries which will allow for significant production growth,” said Cairn India managing director, Rahul Dhir.