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India : CAIRN INDIA submitted a proposal to the oil ministry to begin crude export in RAJASTHAN.

Cairn India submitted a proposal to the oil ministry to begin crude export from Barmer oil field in Rajasthan. The oil and gas major is producing about 170,000-180,000 barrels a day.

If not this production and the new production, the crude from new wells should get permission to be exported.

Cairn believes they can get better price if they were to export this crude, which will be a win-win situation.

Domestic crude cannot be exported. The only agency that can do this is Directorate General of Sea Transportation (DGST) status is Indian Oil Corporation (IOC).

Cairn suggested that if a company were to get a nod for the existing production or the incremental production then IOC should be appointed agency to carry out the export. It suggested a swapping proposal, a common factor globally but not followed in India.

With the exports of crude, the government wins a higher royalty taxes etc, the company gets a better price realisation and IOC can import cheaper crude.

2014 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).

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Publication:Mena Report
Geographic Code:9INDI
Date:Jul 24, 2014
Words:179
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