Jan. 3 (Bloomberg) -- Oil & Natural Gas Corp., India's biggest explorer, will pay more than 200 billion rupees ($5 billion) in subsidies to Indian refiners in the year starting April 1, Chairman R.S. Sharma said.

The explorer's compensation paid to state-run refiners for selling fuels below cost will increase because crude oil prices have soared, Sharma said in an interview in New Delhi today.

Crude oil traded near a record in New York after reaching $100 a barrel for the first time yesterday on concern violence in Nigeria may further cut output in Africa's biggest oil producer.

The New Delhi-based company may earn as much as $95 a barrel on higher crude oil prices, he said.

``Rising demand from developing nations and supply constraints are boosting crude oil prices globally,'' Sharma said. ``Oil prices won't stop at $100 a barrel.''

To contact the reporter on this story: Manash Goswami in New Delhi at mgoswami@bloomberg.net.

Last Updated: January 3, 2008 00:19 EST