Cairn India cuts spending to $500 million for FY 2016

Cairn India Ltd. reported it will cut its capital spending to $500 million from the previously projected $1.2 billion for fiscal year 2016, which begins Apr. 1.

The company said its capex for fiscal year 2015 will total about $1.1 billion.

Cairn will be undertaking projects that are “economically viable” at current oil prices. The company is reengineering projects and renegotiating contracts to improve project economics, it said.

“Our cash-rich balance sheet and best-in-class cost profile provide a solid foundation to operate our high-margin core fields,” said Mayank Ashar, managing director and chief executive officer. “This gives us the optionality to be selective about growth projects in these challenging times.”