Cairn to invest Rs 9,140 cr in Rajasthan block
Cairn India, the Indian subsidiary of Scottish firm Cairn Energy Plc, plans to invest over Rs 9,140 crore in its Rajasthan block, home to the largest onshore oil discovery in more than two decades.
By Agencies |
NEW DELHI: Cairn India, the Indian subsidiary of Scottish firm Cairn Energy Plc, plans to invest over Rs 9,140 crore in its Rajasthan block, home to the largest onshore oil discovery in more than two decades.
Cairn plans to invest Rs 6,900 crore in the Mangala field alone over the life of the field, lasting ’14, according to the draft red herring prospectus (DRHP) filed by the company for an initial public offering (IPO) in December. Mangala is the largest of the 18 discoveries the company has made in the Rajasthan block, where it estimates an in-place reserve of 3.6 bn barrels.
“We expect that a further capital expenditure will be required to maximise the full potential of the Mangala field by ’41 and total gross capital expenditure over the field’s life is estimated to be approximately Rs 6,900 crore ($1.5bn), of which Rs 2,400 crore ($51m) was incurred before July 1, ’06,” the DRHP said.
In addition, Cairn has estimated that the capital expenditure required to develop the Bhagyam field would be Rs 1,290 crore ($280m); Rs 1,060 crore ($230m) to develop the Aishwariya field; and Rs 200 crore ($45m) to develop the Raageshwari Oil and Saraswati fields.
Of the total capital expenditure required for the development of these fields, Rs 69.1 crore ($15m) gross, was incurred before July 1, ’06. Cairn estimated an investment of Rs 3,960 crore ($860m) would be required to commence commercial oil production from the Mangala field in ’09. Of this, on June 30, ’06, Rs 240 crore ($51m) had already been invested.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
