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Cairn Ramping Production at Rajasthan May Depend on CCEA

  • In an exclusive report, CNBC-TV18 has learnt that Cairn India ramping up production at Rajasthan now hinges upon a CCEA approval. The oil ministry has decided that it is best to first get the CCEA’s formal approval on the Cairn-Vedanta deal before giving Cairn a go-ahead to increase its Rajasthan output.The oil ministry has already floated a cabinet note and hopes the matter will be taken up next week.

  • Cairn India, for several months now, has been seeking the government’s approval for hiking its production.  These approvals seemed like a mere formality once Cairn and Vedanta had closed their USD 8.8 billion deal in December after agreeing to all of government’s pre-conditions.Nonetheless, getting this approval is necessary for Cairn to meet its FY12 production guidance of 175,000 bpd.

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