MRPL examining alternatives for benchmarking Cairn’s crude

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New Delhi, July 11

Even as clarity seems to be emerging on how Cairn India 's Rajasthan crude will be evacuated, Mangalore Refinery and Petrochemicals Ltd (MRPL), which is the Government nominee to process the crude, is looking at alternative options other than Indonesian crude basket proposed by Cairn- ONGC for arriving at a crude price.

Sources told Business Line that Cairn-ONGC has proposed a combination of Duri (58 per cent) and Widhuri (42 per cent), which are understood to be heavy and waxy in nature. Besides, both the varieties are said to see major volatility as they are not heavily traded leading to a lot of variation in pricing, sources said adding that "Therefore, MRPL is examining other alternatives available, to reach an appropriate price."

Prices

According to an international consultant, KBC, the crude could be priced at $58.30 a barrel based on the combination of Duri and Widhuri. The production sharing contract signed with the Government requires price to be fixed by references to a basket of free-on-board crude adjusted for differences in quality, delivery time, quantity, and payment terms.

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