Question : Non-Compliance of Commitment by Cairn India

(a) the reasons for non-compliance of the decision /commitment/undertaking presented to the State Government of Rajasthan by the operator company Cairn India whereby company is to sell crude oil from Rajasthan and the sales centre would also be located in Rajasthan only and if so, the details thereof;
(b) whether this amounts to the violation of the decision of Ministry of Petroleum and Natural Gas dated 14.01.2009; and
(c) if so, the details thereof ?

Answer given by the minister

MINISTER OF PETROLEUM & NATURAL GAS
(SHRI DHARMENDRA PRADHAN):
(a) to (c ): As per Production Sharing Contract (PSC) of the block RJ-ON-90/1, operated by Cairn India Limited, delivery point is the outlet flange of delivery facility which in this case is Barmer, Rajasthan. The crude produced from the block is being processed at Mangla Processing Terminal (MPT) in Barmer. However, PSC also provides that different delivery points may be established for sales to Government and other sales with approval of Government of India. In order to facilitate crude evacuation from the block, as there were no refining facilities in the state of Rajasthan, and after considering various options, Government approved laying of heated pipeline from Barmer to Salaya and later extended/shifted to Bhogat in Gujarat and delivery points at Radhanpur, Viramgram and Bhogat in Gujarat. In 2009, Government had agreed to shift delivery point from Salaya to Bhogat terminal at Gujarat coast due to ecological consideration and non-feasibility of delivery point at Salaya to facilitate the crude evacuation from Bhogat.
*********

Download PDF Files