Cairn India has received a government approval that will enable it to proceed with the development of a pipeline to transport oil from its flagship fields in Rajasthan.

The approval from India’s Ministry of Petroleum and Natural Gas ends a year-long wait that had kept investors on the edge of their seats wondering whether Cairn would be forced to foot the $800m cost of the pipeline on its own.

“This is a very positive development for the project,” said Rahul Dhir, Cairn India’s chief executive.

“Along with our joint venture partner ONGC, we have already invested more than $1bn in Rajasthan, and plan to invest an additional $2.6bn in the development over the next two years. ... Read full article