NEW DELHI: Cairn India's prolific Rajasthan oil fields, which are likely to go on production next month, will bring down India's oil import bill by USD 6.8 billion, investment banker Goldman Sachs said in its latest report.
"Based on the recent discoveries in the Rajasthan basin, we believe that Cairn's peak production level can go beyond the company's present guidance of 175,000 barrels per day (8.75 million tons a year)," Goldman Sachs' conviction report on Cairn India said.
It forecast a peak production of 190,000 bpd (9.5 million tons a year) of oil from Rajasthan by end of 2012-13 fiscal.
"We now estimate this would represent about 20-22 per cent of India's total domestic oil production in FY13, making the Rajasthan project one of national importance. Rajasthan oil would likely bring down India's oil import bill by USD 6.8 billion at peak production, which is about 7 per cent of the country's net oil import bill," it said.
India, in 2008-09 paid USD 75.5 billion (Rs 3,41,887 crore) to the oil exporting nations to meet the energy requirement of the growing economy. In addition to this, the government incurred a fuel subsidy of USD 18 billion.
India's current oil production is around 660,000 bpd (33 million tons a year).
Goldman Sachs Investment Research has added Cairn India Ltd in the conviction list, which is the strongest rating in its June report.
Source : The Economic Times