Barmer, (Rajasthan) March 23: Cairn India plans to invest around $2 billion in the next few years in its prolific Rajasthan block to increase its output by 71 per cent.

“In the next couple of years, we are looking at around $2-billion investment. In the next five years, we plan to drill at least 500 wells a year. The resource base allows production of 300,000 barrels per day,” P. Elango, chief executive of Cairn India, said.

Cairn India, promoted by London-based billionaire Anil Agarwal, said the production rate for 2013-14 was expected to be 200,000-215,000 barrels per day (bpd).

In the long run, output from Barmer may go up to 500,000 bpd and the company may invest around Rs 10,000 crore for that, said Anil Agarwal, executive chairman of Vedanta Resources.

The block is jointly held by Cairn India, with a 70 per cent stake, and the operator and public sector explorer ONGC, which holds the remaining 30 per cent.

Cairn India today announced commercial sale of natural gas from the Barmer block in Rajasthan and started production from one more oilfield (Aishwariya) in the area.

“Initial commercial volumes (of natural gas) will be about 5 million standard cubic feet per day,” Cairn said in a statement.