Stating that the strategy was to evaluate the blocks on offer under New Exploration Licensing Policy (NELP) Round X, Cairn India on Thursday said the company was committed to discover new resources and deliver accelerated value from its assets.
The strategy of active exploration across the portfolio opens up potential for resources accretion in the near time. “We are keen on evaluating the blocks in the fresh round of NELP announced by the Petroleum Ministry in order to build on our exploration led growth in India,’’ CEO P. Elango said in a statement after the announcement of the December quarter results on Thursday.
He said the exploration and appraisal programme during 2013 resulted in three discoveries in Rajasthan and declaration of commerciality of Nagayalanka discovery in KG-onshore block. Due to the losses caused by foreign exchange fluctuations, Cairn India announced a 14 per cent drop in its December quarter net profit after record revenue from highest-ever production. Profit in the October-December quarter fell to Rs.2,884 crore from Rs.3,345 crore, a year earlier. Revenue rose 17 per cent to Rs.5,000 crore as output touched a record 224,493 barrels of oil and oil-equivalent gas a day.
Also, the government’s share of profit from the Rajasthan fields went up to 30 per cent from 20 per cent. Cairn had cash of Rs.13,000 crore at the end of December and another $1.45 billion in dollar funds, part of which will be used for a Rs.5,725-crore share buyback that opened on Thursday. The company announced two more oil discoveries in the prolific Rajasthan block, taking the total in the Barmer district block to 28. “Since the resumption of exploration in March 2013, nine exploration and appraisal wells have been drilled until the third quarter of 2013-14 and the initial results have been encouraging with three discoveries and a success ratio of over 50 per cent,’’ the statement said.
