Cairn Oil & Gas, a unit of Vedanta Ltd., will spend USD 4bn over the next three years to more than triple its production, as high prices make investments attractive.
The country’s biggest non-state producer, controlled by billionaire Anil Agarwal, plans to drill more wells to explore new oil and gas reserves across its 51 blocks in the country, Prachur Sah, deputy chief executive officer of Cairn, said in an interview to Bloomberg TV on Friday.
“Our target is to reach half a million production in a very short time by doing these investments,” he said. “This investment is not just a number, but we have projects in line. We are looking at exploration heavily over the next few years to get to these levels.”
Cairn’s plan stands out compared to producers around the world, most of whom are staying away from committing investments in oil and gas and which is leading to a sharp increase in prices as rebounding demand outstrips supply. That’s impacting import-dependent nations such as India, which meets 85% of its oil needs through overseas purchases and prompting the government to push explorers to expand their oil hunt.