ONGC joint venture with cairn

Oil & Natural Gas Corporation (ONGC) has approved a Cairn India plan to increase investment into their jv(joint venture) Rajasthan oilfields, media The total cost of developing the three oil fields, in which the Indian unit of Britain's Cairn Energy owns 70 percent, has increased to $3.8 billion from $2.93 billion, ONGC would invest $350 million more into the fields operated by Cairn India.
India is Asia's third-largest oil consumer. It imports 70 percent of the oil it consumes and is keen to tap domestic reservoirs to help bring down its dependence on imports.
The revised investment plan for Mangala, Bhagyam and Aishwariya oilfields includes $940 million for a pipeline to send away the crude to coastal part of Gujarat.ONGC owns the remaining 30 % in the venture and it has to pay the royalty on the entire crude oil production. The state-owned refiner will ask the Indian government to pay back the royalty payment it has to pay for Cairn as the new plan is economically unviable.