Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Cairn India to invest $2 billion over next two years
BackBack

Cairn India to invest $2 billion over next two years

Cairn India to invest $2 billion over next two years

The announcement by Cairn assumes importance given the limited supplies from India’s domestic energy sources and its dependence on imports.Premium

The announcement by Cairn assumes importance given the limited supplies from India’s domestic energy sources and its dependence on imports.

New Delhi:Cairn India Ltd, which is credited with the largest onshore oil discovery in India, plans to spend $2 billion (around 11,000 crore) over the next two years, according to company chairman Navin Agarwal. Of this, $600 million would be spent towards exploration activities in Rajasthan.

The announcement assumes importance given the limited supplies from India’s domestic energy sources and its dependence on imports—as high as 80% for crude oil and 25% for natural gas. The country is the world’s fourth largest consumer of energy, after the US, China and Russia.

The announcement by Cairn assumes importance given the limited supplies from India’s domestic energy sources and its dependence on imports.

The London-based Vedanta group acquired management control of the firm from the UK’s Cairn Energy Plc. in December 2011. The closure of one of the largest domestic acquisitions in India announced last August was delayed with state-owned Oil and Natural Gas Corp. Ltd (ONGC) making the resolution of a royalty dispute a precondition for approval.

“Based on revised estimates, the total Rajasthan resource base now supports a potential production of 300,000 barrels of oil per day, subject to approvals from the government of India and our joint venture partner, the Oil and Natural Gas Corp. Ltd and further investments," Agarwal said in a note.

This announcement also comes at a time when the oil explorer’s managing director and chief executive Rahul Dhir is slated to step down with effect from 31 August.

The oil ministry says the country’s energy demand is expected to more than double by 2035, from less than 700 million tonnes of oil equivalent (mtoe) today to around 1,500 mtoe.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Utpal Bhaskar
"Utpal Bhaskar leads Mint's policy and economy coverage. He is part of Mint’s launch team, which he joined as a staff writer in 2006. Widely cited by authors and think-tanks, he has reported extensively on the intersection of India’s policy, polity and corporate space.
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 22 Aug 2012, 11:10 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie