Work on Barmer Salaya pipeline commences

Gurgaon, Apr 25 (UNI) Cairn India and Larsen&Toubro Ltd (L&T) today signed a contract of 600- km heated and insulated pipeline and gas pipeline for export of crude oil from Barmer, Rajasthan to Salaya, Gujarat.

The work on the pipeline project had already started and the construction would begin in May 2008. About 200 km stretch of the pipeline would pass through Rajasthan, while the remaining part would be in Gujarat.

Cairn India Rajasthan Projects Board Chairman Philip Tract and L&T Vice President M Ramkumar signed the contract at a ceremony, held at Cairn India office here.

This was a landmark project and the first of its kind in the country, Chief Executive Officer of Cairns India Rahul Dhir said.

''This is a very prestigious project and will be completed within the time frame of 13 months. L&T is excited to be a part of the project and expects to have a long-term relationship with us,'' Mr Dhir said.

He said about 700 sub-contract personnel had been hired by the main contractor for both upstream and midstream projects to ensure that the first commercial production from Mangala in the second half of 2009 can be attained as per plan.

About 90 per cent of these contractors are local. This will result in direct and indirect employment opportunities for over 10,000 people in the construction phase.

The impact in the local community is already visible. The local hotel industry is booming and is fully- occupied for the next two to three years to accommodate engineers and officers of these companies. Barmer is witnessing resurgence in industrialisation due to these activities.

The Enterprise Centre, established under the IFC-Cairn India Linkage programme at Industrial Training Institute Barmer complex, provided by the Government of Rajasthan would provide various certificate training programmes to encourage micro, small and medium enterprises in the Barmer region, Mr Dhir said.

Oil field development work at Cairn India's world class discovery in Rajasthan is proceeding well on schedule. The integrated upstream and midstream development is on course to produce first oil from Mangala in the second half of 2009. All major civil and construction contracts have been awarded, long lead time items have been procured and work on both the upstream and midstream (pipeline) are well underway.

UNI SS SR HT2040