Cairn India to invest $3 bn over next 3 years

Cairn India is planning to invest about $3 billion (Rs. 16,500 crore) over the next three years in finding more oil and raising output from its flagship Rajasthan oil fields, the company’s chief executive P Elango said on Monday. HT reports.

Cairn India is planning to invest about $3 billion (Rs. 16,500 crore) over the next three years in finding more oil and raising output from its flagship Rajasthan oil fields, the company’s chief executive P Elango said on Monday.

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“We have planned for a net capital investment of $3 billion in a three-year-period from FY2014 to FY2016. We are focused on realising the full potential of our world-class Rajasthan assets through a combination of aggressive exploration and fast-track development,” Elango said in the company’s annual report.

Cairn India will raise crude oil production from Rajasthan fields by as much as 23% to 215,000 barrels per day by March 2014.

The current production comes from five fields -- Mangala, Bhagyam, Aishwariya, Raageshwari and Saraswati.

The Mangala field, he said, is producing at plateau rates of 150,000 bpd. Aishwariya commenced production in March and is expected to ramp up to approved rate of 10,000 bpd over the next few months.

Bhagyam, the second biggest oilfield behind Mangala, is expected to ramp up to the approved rate of 40,000 bpd by the second half of current fiscal year, he added.

“We plan to drill more than 450 wells in Rajasthan block over a three year period, an increase from the current rate of 25 wells drilled in FY2013,” Elango said.