Cairn starts pipeline construction

Cairn India began the construction of the country's first heated oil pipeline to take the "waxy" crude from its fields in Barmer (Rajasthan) across a distance of 600 km to Salaya (Gujarat). According to the sources, the company has sought necessary clearances from the government to add 80 km to the pipeline length.

Cairn India Chairman Bill Gammell, told that "the delivery point of the crude oil will depend on the destination which the government approves."  
The Barmer fields are jointly owned by Cairn (70 per cent) and ONGC (30 per cent).

"About 32 intermediate power-feeding and heating stations to maintain the required temperature will be built along the length of the pipeline. A dip in the temperature could lead to coagulation of the crude oil.

Gammell hopes to produce 175,000 barrels of oil a day from Mangala, Bhagyam and Aishwariya fields which constitutes about 25 per cent of India's domestic crude oil production.

"Integrated upstream and pipeline development is on course to produce the first oil from the Mangala field in Rajasthan in the second half of 2009," said Gammell.

India imports about 20 lakh barrels of oil a day. It produces approximately 7 lakh barrels a day, of which approximately 50,000 barrels come from Cairn India-operated Ravva field on the east coast of India.