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The production of crude oil from the Rajasthan fields of Cairn India is scheduled to commence this month. According to the company, a barrel of crude oil will cost $5.
According to Cairn India Chief Executive Officer, Rahul Dhi, about 30,000 barrels of crude oil will be produced in the initial stage ever day. He also added that this will be increased to 80,000 barrels per day by 2009 end.
The stakes of RJ-ON-90/1 block are held by Cairn India and nationalized ONGC on 70-30 basis.
"We intend to keep our costs low and see the production cost at about $3.5 per barrel. The transportation cost will be another $1.5 (per barrel)," Dhir said in a statement.
The crude oil will be processed at Indian Oil Corporation and the Mangalore refinery of ONGC.
