Energy firm Cairn India, which operates the Mangala crude oil field in Barmer, Rajasthan, Wednesday said it had concluded an initial agreement to sell crude oil to Reliance Industries.
As per the agreement, Cairn India will supply crude from the Mangala fields to Reliance Industries' refinery in Jamnagar, Gujarat.
"The implied price realisation represents an average 10-15 percent discount to Brent (crude) on the basis of prices prevailing for the six months to September 2009," Cairn India informed the Bombay Stock Exchange (BSE) in a statement.
The agreement comes after the government allowed private refiners to buy crude from the Mangala oil fields.
Brent crude Wednesday was trading at Rs.3,642 ($77.5) per barrel or 159 litres at the Mumbai-based Multi Commodity Exchange.