Cairn India, which reported a 60 per cent rise in quarterly profit after two straight quarters of decline, has got the government’s permission to sell crude oil to private refiners. The permission could help the company get a better price for the crude it produces at the Barmer block in Rajasthan.
The exploration and production company said its consolidated net profit in the September quarter rose to Rs 470 crore from Rs 293 crore a year earlier. Cairn India shares were down 2.3 per cent at Rs 265.15 on the Bombay Stock Exchange.
Cairn started pumping crude from its field in August and has sold its first consignment to Mangalore Refinery & Petrochemicals Ltd (MRPL). Indian Oil Corporation, Hindustan Petroleum Corporation Ltd and MRPL are the government nominees for receiving the Cairn crude.
Reliance Industries Ltd and Essar Oil are the only two private refiners in the country. "The government has now agreed for private refiners to qualify as additional offtakers of the Rajasthan crude," Cairn said in a statement. The producing Mangala field had an average gross production of 5,991 barrels per day (bpd) the second quarter and is currently producing 10,000 bpd.
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