Cairn India would engage in oil production in the fields of Rajasthan. It will produce up to 71 per cent more oil as per the statement of a top company executive. Cairn India is a subsidiary of the UK-based Cairn Energy which is operating in Indian region. Cairn Energy is also keen to expand its business in new territories such as Greenland. It has 50,000 square kilometers in Greenland and expecting more number of blocks in forthcoming months.

Rajasthan has a good prospectus of oil. It is the second largest oil field after Oil and Natural Gas Corporation’s (ONGC) Bombay High. ONGC and Cairn India has also asked the government to benchmark the price to the oil produced in Indonesia. Cairn India is looking for new customers to buy the oil. The crude oil refiners are reluctant to buy the oil as it contains impurities and wax. The refiners want more discount on oil to compensate the loss.

Cairn India also began construction of a 600 kilometer pipeline to carry oil from Rajasthan to the coast. It is likely to complete within a year. Rajasthan is producing 150,000 barrels and expected to yield 175,000 barrels in the coming months.

The shares of Cairn were dropped by 3 per cent to £27.80 on Tuesday.