Companies

Cairn India to spend $3 bn on capex

Our Bureau Mumbai | Updated on November 25, 2017 Published on July 23, 2014

The Chairman of Cairn India, Navin Agarwal, has announced an investment of $3 billion towards the company's three-year capex programme.

He made the announcement at >Cairn India's AGM held in Mumbai on Wednesday.

"We are confident that this will lead to a reserve replacement ratio of 150 per cent and help us deliver a growth of 7 per cent to 10 per cent in production over the next three years from the Rajasthan block," he said.

"Our development projects in the Rajasthan block will maximise the economic value from existing production and add to future production by expanding the company's resources and reserves," he added.

He further said that leveraging the gas potential of the Rajasthan block would be a priority for Cairn India and involve potential for significant expansion.

"We see natural gas as a key growth area with potential to play a significant role in the company's production growth in the years to come," he added.

Gas production plan

The company is also currently working on a gas production plan which will include a new 24 inch/30 inch pipeline to connect to the national grid.

Agarwal added that the company has identified that the Raageshwari Deep gas field has significantly higher resources which can be ramped up for production through additional infrastructure.

"In addition, our ongoing exploration programme around the field is yielding positive results. Initial assesments indicate a significantly large resource base," he added.

Rajasthan block

Elaborating on the company's Rajasthan block plans, Agarwal said the company would continue its drilling programme targeting a total of 7 billion barrels of oil equivalent hydrocarbons in place.

"A majority of the exploration wells drilled to date have shown hydrocarbons," he added.

During FY14, the Rajasthan block produced an output of 66.3 mmboe and a production of 200,000 boepd.

Published on July 23, 2014
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