From The Financial Times
By Rebecca Bream in London and Khozem Merchant in Mumbai
Published: July 3 2006 07:57 | Last updated: July 4 2006 03:06
Cairn Energy said on Monday it would start producing oil from its massive discovery in India by the end of this year, and that it had secured $1bn of bank financing for the project, including backing from the International Finance Corporation.
The UK oil company first discovered oil in Rajasthan in north-west India in 2004, and has since become one of the most valuable London-listed oil and gas companies.
Cairn said on MOnday that work was on track to start producing oil from the Saraswati and Raageshwari fields in the fourth quarter of this year at an initial rate of between 2,000 and 3,000 barrels a day.
The largest discovery is the Mangala field, which will start production at the end of 2008. At their peak, Cairn’s three biggest fields will yield 150,000 b/d, or a quarter of India’s crude output of about 650,000 b/d. Cairn currently operates fields that produce 87,000 b/d in India, of which its entitlement is 17,000 b/d.
To finance the development of the fields, Cairn said it had lined up a $1bn bank facility, including $150m from the International Finance Corporation, a unit of the World Bank.
This is the IFC’s largest loan to India. The rest of the facility is supplied by a group of international and Indian banks including Royal Bank of Scotland and ICICI.
Cairn is also working on an initial public offering of its Indian assets later this year or early next year on the Bombay Stock Exchange, a move that will leave it with a much smaller presence on the London market. Cairn is expected to hold a controlling stake in the new Bombay-listed entity, which is to be called Cairn India. The IPO is likely to trigger a large return of cash to Cairn’s shareholders.
Cairn’s Rajasthan assets, along with smaller fields off India’s east and west coasts, will form the bedrock of its new Indian entity.
Sir Bill Gammell, Cairn’s chief executive, said the debt-raising “reflects a long-term investment commitment to India”.
Somit Varma, head of the IFC’s energy division in Washington, said the IFC’s ability to “take on additional risk gave much more room for the commercial lenders to take part on a shorter maturity”.
The IFC has rapidly increased its presence in India in recent years. It has about $1.2bn in equity and debts investments.
Cairn’s fortunes have been tied inextricably to India, after it bought cheaply a block from Royal Dutch/Shell that subsequently yielded the massive Mangala field. According to Cairn, the field holds in-place reserves of 1.1bn barrels of oil.
Cairn’s shares fell 34p to £21.59 on Monday.
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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