Insnider: Amangala

AmangalaThe poor folks at Cairn India have decidedly mixed fortunes.

On the good side, their rather aptly named Mangala field is pretty much a gusher. It’s the country’s biggest find since the 70s Bombay High field (which, by the way, is now in terminal decline), with a slated peak production of 175,000 barrels a day. Which will take Cairn straight into the big boys’ room, and give India a desperately needed new supply of crude.

But the Rajasthan government has flung one spanner in the works: It plans to treat the output as a local sale (this despite the crude actually being transported to Gujarat, from where it will be sold) and slap 4 percent VAT on it. Cairn is done with all the pre-production work and ready to start pumping it out, and all the top brass from Cairn Energy, including top-shot Sir Bill Gammell are planning to be in India for the AGM.

But nothing’s moving. For one reason: They want our Prime Minister to inaugurate the project, and they still haven’t found a slot in his calendar. Cairn top shots are chewing their nails and hoping they can get him to cut the ribbon before August 15th, which is when they hope to start production. Jai Hind, chaps!