LONDON: Scottish explorer Cairn Energy plc on Tuesday said it would launch an initial public offering (IPO) of its Indian operations in December this year. "We plan to file a draft red herring prospectus for the IPO by September 25... Pricing will be decided by November end," Cairn Energy Finance Director, Kevin Hart, told reporters here.

Dashing all hopes of setting up a refinery in Rajasthan, the company said it was evaluating the option of selling the oil found in the State to a refinery in Gujarat or Haryana by laying a pipeline.

"We are investigating the potential of Cairn Energy to participate in a pipeline to evacuate crude from the Rajasthan block," Mr. Hart said. Though the midstream development (building of pipeline from delivery point to a refinery) is the Government of India or its nominee's responsibility, Cairn is considering participating with ONGC in building a pipeline to a refinery of Reliance Industries, Essar Oil or Indian Oil Corporation in Gujarat or IOC's expanded Panipat refinery in Haryana as a `potential risk-mitigation' exercise. Mr. Hart said Cairn and its partner Oil and Natural Gas Corporation (ONGC) were in talks with various refiners to sell Rajasthan crude. He said the possible options include laying a 471-km pipeline from Mangala field in Rajasthan to Mundra port, 531-km pipeline to Salaya or a 340-km line to Viramgam in Gujarat.

The Rajasthan crude was waxy and it could be processed at Reliance's existing 33 million tonnes Jamnagar refinery or its upcoming 29-million-tonne refinery at the same site, Essar's under-construction Vadinar refinery, IOC's expanded Koyali refinery in Gujarat or Panipat refinery in Haryana, he said.

PTI

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