New Delhi: Private sector refiners Reliance and Essar Oil and state-run firms Bharat Petroleum and Hindustan Petroleum have evinced interest in buying Cairn India’s Rajasthan crude oil that will begin flowing from 2009.
“BPCL has evinced interest in making Cairn’s Rajasthan crude, the base crude for its upcoming Bina refinery in Madhya Pradesh. It can take up to 100,000 barrels per day in the 6 million tons Bina refinery”, an industry source said.
Reliance wants 30,000 barrels per day for its existing Jamnagar refinery and a similar quantity in the upcoming refinery of Reliance Petroleum. Essar Oil can take between 30,000 to 40,000 bpd crude in its Vadinar refinery.
BPCL and HPCL can take 30,000 bpd Rajasthan crude in their Mumbai refineries after a pipeline is laid from Barmer district (Rajasthan) to a port on Gujarat coast, from where the oil can be shipped, the source said.
Cairn and its 30% partner ONGC plan to lay a 340-km line to Indian Oil’s (IOC) Viramgam pipeline terminal in Gujarat. Viramgam is connected by pipelines to IOC’s Koyali and Panipat refineries, which can also be potential customers of Rajasthan crude, taking 20,000 bpd each.
Smaller pipeline can be built to the coast or Jamnagar where Reliance Industries and Essar Oil have refineries. Rajasthan fields at peak can produce 150,000 bpd of oil. The source said BPCL wants a small spur line from the pipeline to Viramgam that will connect it with the crude oil pipeline being laid from Gujarat coast to Bina refinery.
When contacted, Cairn spokesperson David Nisbet said,“We are involved in ongoing discussions with government and third parties for evacuation of Rajasthan crude.”