Cairn Oil and Gas, a unit of Vedanta Ltd, will invest $4 billion in its flagship Barmer oil block in Rajasthan, Cairn said on Tuesday. The Delhi high court on Monday allowed a 10-year extension to the block on the condition that it pays a higher share of profit to the government. The extension results in an overall increase of oil and gas reserves of 400 billion barrels and a production of 125,000 barrels, said Sudhir Mathur, chief executive officer of Cairn India.
“The extension also increases our reserves by 250 million barrels. That is quite a big booster to our overall reserve position,” said Mathur. “Cairn has driven up its share of India’s oil output by 3.5 times in the last nine years, significantly from the Rajasthan block and the extension is a great acknowledgement of our performance.”
The extension also paves the way for further investments. “We are spending $4 billion, out of which we have already signed contracts worth $2.3 billion and the work has started in a big way. There are already 13 rigs operating in the Rajasthan block,” said the CEO. Read more
Latest posts by Livemint (see all)
- Greenhouse gas levels in atmosphere hit new high: UN - November 22, 2018
- For hauling Palace on Wheels, 70-year locomotive back on tracks: In Pics - November 22, 2018
- Petrol price cut by 41 paise today, diesel by 30 paise. Check rates here - November 22, 2018