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Cairn, ONGC get govt nod for oil pipeline

Cairn, ONGC get govt nod for oil pipeline
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First Published: Tue, Sep 11 2007. 10 39 PM IST
Updated: Tue, Sep 11 2007. 10 39 PM IST
Mumbai: Cairn India and Oil and Natural Gas Corp. Ltd, partners in the Rajasthan oilfields, have received permission from the government to build a pipeline to transport crude oil.
Cairn Energy India Ltd, operator of the fields and 70% partner in the joint venture, said that it has received a letter from the government granting the “right of use” for laying a 500km pipeline.
Given that Rajasthan crude is waxy in nature and needs to be kept warm for it to flow, the pipeline will be a heated one and is expected to cost around $780 million (Rs3,167 crore).
The two firms had come to an agreement on laying the pipeline, which will carry the crude to Gujarat, and had been awaiting the government granting the right of use. Cairn said the procurement of several lead items for the pipeline has already begun.
ONGC shares fell 0.46% to Rs828.30 each on the Bombay Stock Exchange on Tuesday, while Cairn’s shares were up 1.47% to Rs159.05 a share.
Reuters contributed to this story.
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First Published: Tue, Sep 11 2007. 10 39 PM IST