courtesy Cairn

Cairn Energy has notched net profit of $1.5 billion after a slight loss a year ago, eclipsed by a near-$2 billion Cairn India listing and improving relations with authorities.

With nearly $1 billion cash on hand, Cairn has secured Indian government approval for a pipeline in Rajasthan to move an expected 150,000 barrels per day from three fields.

The Mangala, Bhagyam and Aishwariya fields will start producing in 2009 for refineries in Gujarat.

Some 2.2 billion barrels of oil are proven and probable at the trio of fields plus Saraswati, Raageshwari Oil and Raageshwari Deep Gas. Cairn was transformed in India from an E&P outfit into medium-sized operation on the strength of oil discoveries.