The crude oil will be delivered to RIL’s Jamnagar refinery through heated crude oil tankers. As in the case of GoI nominees, Indian Oil Corporation Limited and Mangalore Refinery and Petrochemicals Limited, the commercial terms including the price for the initial offtake of the Rajasthan crude have been concluded with RIL.
The implied price realization represents an average 10-15% discount to Brent on the basis of prices prevailing for the six months to September 2009.
Cairn India has requested the GoI to nominate additional offtake arrangements and discussions with other private refiners are in progress.
Cairn India has designed the Mangala Processing Terminal (MPT) to process crude before being evacuated for sale to GoI nominees and private refiners. The MPT will process crude from the Mangala, Bhagyam and Aishwariya fields – collectively known as the MBA fields. The MPT is designed to process 205,000 bopd of crude with scope for further expansion.
