Commodity Online

MUMBAI: The global independent oil exploration and extraction company, Cairn Energy said its Indian unit and the government is currently holding talks on financing of a major pipeline project.

Cairn India said in a statement that the company is in talks with the government for financing of a pipeline to transport crude from its Mangala field in Rajasthan.

The company was still in talks aimed at gaining permission to recover about $800 million in construction costs by reducing the government's share of future oil sales, it said.

The company added it now estimated gross oil in place reserves in Rajasthan at 3.75 billion barrels of oil equivalent (boe), up from the 3.6 billion boe it flagged last year.

Cairn said proved plus probable reserves, 2C resources and 2C enhanced oil recovery potential increased 19 percent to 1.08 billion boe.