Cairn India looks forward to invest Rs 30,000 crore to add 1 lakh bpd of oil

Cairn India is looking forward to invest Rs 30,000 crore in the next three years to produce an additional 1,00,000 barrels per day of oil and oil equivalent gas, from its Rajasthan fields. This was confirmed by its mining billionaire promoter Anil Agarwal.

He also confirmed the merger of the cash-rich Cairn with its parent Vedanta Ltd is likely to be completed by March-end.

Agarwal added that the merger of Cairn India with Vedanta Ltd will be completed by March-end. "We are on track. There is no problem. The merger will be completed by March," he said.

"We have committed to investing Rs 30,000 crore to add 1,00,000 barrels per day of oil and oil equivalent gas over the next three years," he told PTI.

As of now, Cairn produced 2,06,230 barrels per day of oil equivalent in the second quarter ended September. Bulk of the production came from its Rajasthan block that gave 1,67,699 barrels of oil equivalent per day (boepd). The Ravva field in the Bay of Bengal produced 18,823 boepd and Cambay another 9,877 boepd.

"India has been very less explored and we believe there is enough resources below the ground that can be produced," he told PTI.

Cairn is investing in enhanced oil recovery (EOR) and improved oil recovery (IOR) scheme to sustain production from the oil fields as also develop the Raageshwari Deep Gas (RDG) project. It is looking to increase gas production to 40-45 million standard cubic feper day (mscfd) by 2017 and 100 mscfd by 2018-19.

Vedanta is said to be keen on using Rs 23,290 crore cash lying with Cairn to pay off part of its Rs 77,952 crore debt.
(image: Indiatimes)