Indian mining and oil group Vedanta Resources said its Cairn India subsidiary has made another oil discovery in Rajasthan, sending its share up 4pc.

Vedanta, controlled by London-based billionaire Anil Agarwal, bought a majority 58.5pc stake in Cairn India from London-listes Cairn Energy for $8.5bn in 2011

This is Cairn India’s 26th oil discovery in the area and the group plans to drill 30 wells in the area this year. The group is targeting a 71pc increase in production to 300,000 barrels of oil equivalent a day. This would be equivalent to 40pc of India’s total output.

“We are delighted with the 26th discovery in the block,” the company said. “This reaffirms our belief that an aggressive exploration drilling programme will help harness the full potential of the Barmer Basin in Rajasthan.”

There has been speculation this week that Vedanta aims to buy Cairn Energy, the former parent of Cairn India. Cairn Energy still owns a 10pc stake in Cairn India, but has been focusing on exploration in Greenland. Cairn Energy has about $1.6bn of cash on its balance sheet.

Courtesy: The Telegraph