The government is reportedly planning to raise the price of natural gas produced from Cairn India’s eastern offshore Ravva field by 20 per cent to $4.2 with effect from June 2010.
The Centre is set to raise the price of gas from the Ravva Contract Area 1 to $4.2 per million British thermal unit (mBtu) as against $3.5 per mBtu it gets currently. Ravva is divided into Contract Area 1 and Ravva Satellite. It already gets $4.3 per mBtu from the Ravva Satellite field but gets $3.5 per mBtu from Ravva Contract Area 1.
Cairn India is one of the largest independent oil and gas exploration and production companies in India with a market capitalisation of $ 10 billion.