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Energy | Cairn says still in talks with govt on oil levy

Energy | Cairn says still in talks with govt on oil levy
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First Published: Fri, Sep 04 2009. 10 25 PM IST
Updated: Fri, Sep 04 2009. 10 25 PM IST
New Delhi: Explorer Cairn India Ltd, a unit of UK-based Cairn Energy Plc., said it’s still in talks with the government on the levy for crude oil it produces from Rajasthan field, denying a report an agreement had been reached.
Cairn India will pay the government a $9 (around Rs440) a barrel levy on the crude oil it produces from Rajasthan field, ‘The Economic Times’ reported, citing an unidentified oil ministry official. Output started last month and may reach a peak of 175,000 barrels a day by 2011.
“We continue to discuss with the government,” Cairn India spokesman Manu Kapoor said in a mobile phone text-message on Friday, when asked to comment on the report. Oil Ministry spokesman R.C. Joshi couldn’t immediately comment, while oil secretary R.S. Pandey couldn’t be reached on his mobile phone.
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Govt may up natural gas price for state explorers
New Delhi: India may increase the price of natural gas extracted from fields awarded to state explorers by 44%, easing revenue losses for Oil and Natural Gas Corp. Ltd (ONGC), the country’s biggest energy producer.
A proposal to price the gas at $2.6 (around Rs127) per million British thermal units (mmBtu) from $1.8 per mmBtu currently will be submitted to the cabinet soon, V.L.V.S.S. Subba Rao, joint adviser of finance in the oil ministry, told reporters in New Delhi on Friday. The price, effective from 1 April this year, is linked to the wholesale price index, he said.
— Bloomberg
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India may buy Sempra’s LNG from Tangguh plant
Singapore: India may buy 1.8 million tonnes (mt) of liquefied natural gas (LNG) a year that Indonesia had planned to sell to Sempra Energy, ‘Dow Jones Newswires’ reported, citing an unidentified Indonesian official.
The BP Plc-led Tangguh project in Papua province can divert as much as 1.8 mt of LNG a year to other customers if prospective buyers pay higher prices, Dow Jones said, citing the official. The report didn’t say if Indonesia will meet the demand of its original customers with LNG from elsewhere.
— Bloomberg
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Oil India, partners may invest $5 bn in Iran gas
New Delhi:Oil India Ltd, the nation’s second biggest state-run explorer, said it may invest $5 billion (Rs24,450 crore) with its partners to develop a natural gas field in Iran.
The expenditure on the offshore Farsi block may be incurred over seven-eight years and the grouping is in talks with National Iranian Oil Co. over a contract to develop the field, according to Oil India’s share-sale document.
“We are still thinking whether we should invest and we are talking to Iran,” B.N. Talukdar, director of exploration, told reporters in New Delhi on Friday.
Oil India has a 20% share in the grouping. ONGC Videsh Ltd and Indian Oil Corp. Ltd own 40% each.
Separately, Oil India said on Friday it has found 130 million tonnes of “heavy oil deposits” at Baghawala sandy desert area in Rajasthan’s Barmer district. The firm is planning to dig 60 wells to locate the exact site of heavy oil.
— Bloomberg and PTI
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First Published: Fri, Sep 04 2009. 10 25 PM IST