India investing in domestic oil production

July 24, 2013 at 7:24 AM

NEW DELHI, July 24 (UPI) -- Oil producer Cairn India said Wednesday it would invest billions of dollars in domestic development to increase production from India's largest reserve area.

Cairn India said it was designating most of a $3 billion investment targeting the domestic energy sector on the Barmer oil fields, the largest in the country. Cairn said it wants to increase production from the reserve area from 180,000 barrels per day to more than 210,000 bpd by the end of the current fiscal year.

"We have submitted an integrated field development plan for the Barmer block to the petroleum ministry and we are hopeful that it will be approved soon so that we can expedite production from the Barmer block," Chief Executive Officer P. Elango was quoted by the Economic Times of India as saying.

Cairn in March began selling associated natural gas from the Barmer area. The company said it expected initial sales from the production of nearly 5 million cubic feet of natural gas per day.

The company said the government was "moving in the right direction" with price mechanisms tied more closely to international market conditions.

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