Cairn India plans to use earnings from Rajasthan assets to buy new oil & gas blocks

Cairn India plans to use earnings from Rajasthan assets to buy new oil & gas blocksCairn India Ltd, one of the largest oil & gas discovers in India, has announced its plans to use earnings from its Rajasthan assets to acquire new oil & gas blocks.

The company said that it was well placed to not only develop its existing assets but also open up new growth opportunities to further strengthen the exploration and production (E&P) portfolio.

The company aims to achieve a goal of 200,000 barrels of oil equivalent per day by FY2013-14 from its Rajasthan block. Of its earnings, it plans to spend $3 billion on capacity expansion by FY2015-16.

Announcing the plans, the company said, "Cairn India . well placed to not only develop the current asset base and deliver on the active exploration growth program with its $3 billion capex plan till FY2015-16, but also opened up inorganic growth opportunities to further strengthen the E&P portfolio."

The company is confident that it will be able to produce 225,000 barrels of oil per day by the end of current financial year.

Cairn India, which was acquired by London-based Vedanta Resources Plc in 2011, enjoyed strong growth in sales and profit in the second-quarter ended September 30. The company announced that its profit jumped 46 per cent to Rs 3,385 crore year-on-year in the July-September quarter.

Net revenue increased by 5 per cent, from Rs 4,443 crore in the second quarter of FY2012-13 to Rs 4,650 crore in the same quarter of this year.