Cairn India is all set to cut its projected capital expenditure by 58% for the next financial year to $500 million from the earlier projection of $1,200 million due to historic decline in global crude oil prices.
The company’s capex in the current financial year stands at $1.1 billion and in light of the current oil price environment, it is taking a proactive approach to capital allocation and shareholder returns.
The company will also undertake projects that are economically viable at current oil prices, its management’s focus is on re-engineering projects and re-negotiating contracts to improve project economics and it will remain agile to make investments to enhance volumes.
