Cairn India Slashes 2015-16 Capex on Falling Crude
MUMBAI, March 4 (Reuters) – Cairn India Ltd, India's largest private sector crude oil producer, said on Wednesday it would cut spending by about 60 percent for the fiscal year starting April 1, as falling oil prices hurt profitability and make project expansions unviable.
The company, a unit of London-listed Vedanta Resources Plc, is revising capital expenditure, or capex, for the 2015-16 financial year to $500 million from $1.2 billion, while deferring the rest, Cairn India said in a statement.
Vedanta Resources Chief Executive Tom Albanese said in January the company would apply "a meaningful reduction" to its previously planned $2 billion spending across businesses in the coming fiscal year.
Cairn India will undertake projects that are economically viable at current oil prices, the company said.
Cairn, which plans to spend $3 billion over three years to boost oil production and natural gas output in the western Rajasthan state, also said it expected volumes to grow this year despite the reduction in spending.
(Reporting by Aman Shah in Mumbai; Editing by Biju Dwarakanath)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Sri Lanka Launches Tender To Develop Natural Gas Site In Mannar Basin (Feb 13)
- Mangala Field Hits 300 Million Barrels of Cumulative Production (Oct 20)
- Vedanta Wins Cairn Nod For BHP-Style Resources Conglomerate (Sep 13)