The Edinburgh-based group said Cairn India had agreed to supply crude from Mangala to the refinery owned by Indian giant Reliance Industries in Jamnagar, Gujarat state. It said the implied price it would realise under the contract represented an average 10-15% discount to Brent crude on the basis of prices prevailing for the six months to September 2009. When the company started production from Mangala in August it said it had agreed to supply Mangalore Refinery and Petrochemicals and Indian Oil Corporation with the initial volumes of crude at a price representing a 10-15% discount to the Brent prices prevailing for the six months to June 2009.
Brent prices increased in the six months to September compared with the six months to June.
In January, Brent crude fetched around $40 a barrel. Brent crude for December delivery rose 55 cents to $78.66pb on the ICE Futures exchange in London yesterday. Shares in Cairn Energy closed up 132p at £27.75.
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