Cairn to invest Rs 4,300 cr in Rajasthan

British firm Cairn Energy has approached the Rajasthan government seeking permission for commercial production of up to six million tonnes of pit oil a year from its fields in Barmer district.

A seven member delegation, headed by Cairn CEO Bill Gaimel, informed Chief Minister Vasundhara Raje that the company planned to invest Rs 4,300 crore (Rs 43 billion) for oil production in the state.

Cairn had earlier been allowed to explore for oil in Barmer basin. Of the 91 wells it drilled, it struk oil in 12 wells that was sufficient for commercial production, an official release quoting Bill said on Tuesday.

These wells could provide 300 million tonnes of oil (over 2,000 barrels) if made commericially viable, Bill claimed.

About 4,000-5,000 barrel of oil could be produced every day from the Barmer-Sanchor basin alone, he said, adding it could go up to 1.5 lakh barrels a day if it was developed.