Cairn India Mulls Gas Foray

Cairn is likely to foray into gas business and offers to sell it at USD 4.2/mmbtu, CNBC-TV18 reported citing sources. The company will also drill for gas at Rajasthan’s Raageshwari field.

Sources said a “test case” proposal for gas foray has been sent to India’s Oil Ministry. Cairn is said to have proposed to price gas at APM level of $4.2 for two years.

The company will begin with small quantity of 0.2 mmscmd and wants to test model for two years to ascertain sustainability.  Sources said Cairn will discuss gas business plans with Oil Ministry and DGH on January 18.