As part of this effort, Vedanta Resources subsidiary Cairn India is planning to produce an additional 1,00,000 barrels per day of oil and oil equivalent gas with an investment of Rs300bn ($4.4bn).
Vedanta Resources chairman Agarwal was reported by Press Trust of India (PTI) as saying: "We have committed to investing Rs300bn ($4.4bn) to add 1,00,000 barrels per day of oil and oil equivalent gas over the next three years.
"India has been very less explored and we believe there is enough resources below the ground that can be produced.”
Agarwal was reported by Bloomberg as saying that the metals company Vedanta is considering investment of $1.5bn in boost its business in the coming years.
He said that Cairn is currently seeking approval for a 10-year extension for a block in Rajasthan, a state in India. It is also considering charging international prices for crude produced from the block.
“India has a lot of hydrocarbon and we want to produce more oil and gas in India.
“We have explored only 10% of our resources and we have better resources than even China. We hardly produce anything.”
Earlier, Vedanta Resources has agreed to merge its two units, oil and gas company Cairn India and debt-laden mining firm Vedanta Limited in a deal valued at $2.3bn.
Vedanta noted that the deal is part of its plan to further simplify its internal processes and improve productivity.
Upon completion of the transaction, Vedanta Resources will have 50.1% stake in Vedanta Limited. The enlarged entity will be 20.2% owned by Cairn India while Vedanta minority shareholders will hold the remaining 29.7% stake.
Image: Cairn India plans to produce additional 1,00,000 barrels per day of oil and oil equivalent gas. Photo: courtesy of Rosemary Ratcliff/FreeDigitalPhotos.net.
