Cairn eyes higher production, revenues

Cairn India can hike oil output from its Rajasthan block to 235,000 barrels per day by 2013, one year earlier than originally estimated, the company’s CEO, Anil Agarwal, has said in a letter to Prime Minister Manmohan Singh, according to CNBC-TV18.

The acceleration in production can boost Cairn India’s revenues by Rs 6,000 crore and projected net profit at around Rs 11,200 crore based on that level of output.The higher output would also net Rs 30,000 crore for the government and reduce India’s dependence on oil imports to the extent of $8.5 billion, it said in the letter.

[caption id=“attachment_314114” align=“alignleft” width=“380” caption=“Reuters”] [/caption]

Cairn said it was also eyeing production levels of 500,000 barrels per day in the future, which, it claimed, would net the government Rs 60,000 crore in revenues andreduce India’s dependency on oil imports by $18 billion.

The letter urged the government to support Cairn India’s plans to hike oil output, noting that it had planned significant investments for “optimal exploration and development”.

Cairn India officials, however, declined to comment to CNBC TV18.

(Reporting by Nayantara Rai)