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The investment will be fully funded from the firm’s cash resources.
Cairn has set a target of adding 530 million barrels of oil to its reserves.
“Over the next three years, through the end of FY2016, your company will invest more than Rs 16,000 crore (USD 3 billion) in pursuit of finding and producing more oil,” he said.
A major part of that investment will be allocated to the western Indian state of Rajasthan, where Cairn plans to raise crude oil production by 23 per cent.
“In Rajasthan, as an example, your company will invest more than Rs 13,000 crore (USD 2.4 billion) and drill more than 450 wells,” he said.
The target of drilling more than 450 wells in Rajasthan over a three year period is a significant increase from the current rate of 25 wells drilled in the 2013 financial year.
The firm contributed more than 80 per cent of India’s crude oil production growth last year, saving Rs 38,500 crore ($7 billion) in foreign exchange.
Cairn India is a unit of London-listed Vedanta Resources Plc that deals in oil and gas exploration and production.