India is not exactly the place that you would look for oil as at this moment India is among the largest importers of crude oil in the world. However, Cairn Energy PLC, a UK based energy company, feels that India has good potential in terms of finding oil and for this reason, the company has managed to get a bank loan of $1 billion. Being impressed by this, India government has given the go ahead to Cairn Energy so that it can start exploring for oil in four oil fields in the western Indian state of Rajasthan. The company is also going to float an initial public offering (IPO) in Q4 2006 or Q1 2007 in India. Thus, Cairn will have a very strong presence in India within a few months.
Mangala, Aishwariya, Saraswati and Raageshwari fields will be now developed by Cairn and the company is expecting that these fields will yield a substantial amount of oil. Production of oil is supposed to start by 2008. Cairn bosses do not have to worry about finding the market for this oil. Oil hungry Indian economy is enough to consume whatever Cairn can supply.
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