New
Delhi, 28 October 2022.
Cairn
Oil & Gas, a unit of Vedanta Ltd., and India’s largest private oil and gas
exploration and production company, has secured approval from the Ministry of
Petroleum& Natural Gas (MoPNG) to extend
the production sharing contract (PSC) for its Rajasthan block for ten
yearsuntil May 2030.
Speaking
on the contract extension, PrachurSah, Deputy CEO, Cairn Oil & Gas
said, “This extension will be a key determinant in our goal of doubling
production capacities and helping India achieve energy aatmanirbharta.
Home to prolific fields, the Rajasthan block demands extensive investment in
technologies to enhance recovery.The field also carries potential for new
explorations. For these opportunities, especially, this contract extension will
be significant. The Rajasthan block is also home to our unconventional shale
exploration, and we are confident that this contract will now enable us to streamline
operations and enhance investment in this very prolific block. We are firm in
our overall visionof contributing 50% to India’s domestic crude production and
we will do this by committing aninvestment of USD 5 bn and achieving production
of 500,000 barrels of oil equivalent per day (500 kboepd).”
The
block, with 38 discoveries, till date, has total in place hydrocarbons of 5.9
billion barrels of oil equivalent (bboe).The block has cumulatively
producedmore than700 million barrels of oil equivalent (mmboe) in the last
decade. This contract extension will spur capex investment and encourage private
players entering this critical sector.
The
Rajasthan block is of crucial national significance and is home to a number of
technology firsts. The field has been the firstin
the country to apply micro seismic hydrofrac monitoring technology and has also
executed the world’s largest jet-pump operation. It is also home to the world’s
largest Enhanced Oil Recovery (EOR) polymer flood project and the world’s
largest Alkaline Surfactant Polymer (ASP) project.The field also marks
the starting point of the Mangala pipeline – the world’s longest continuously
heated and insulated pipeline that carries crude from the fields of Rajasthan
to refineries in Gujarat.
These
many technology-firsts have been enabled by the previous PSC and the new
contract is expected to pave the way for more technological excellence as the
company gears to double production and achieve full potential of the Rajasthan
block.
Cairn
Oil & Gas recently won 8 oil blocks and one Coal-Bed Methane (CBM) block
under the DSF Round III bids, taking the company’s total assets in the country
to 62. These gains have been in line with the company’s aim to double
capacities, touch 500 kboepd of production and take India towards energy aatmanirbharta.
The company’s growth pivots on three strategic levers including increasing
production from existing blocks through investments and partnerships, exploring
unconventional energy sources like shale and encouraging new exploration and
discovery of oilfields.Now, the PSC extension for Rajasthanblock willplay a
driving role in enabling the companyenhance India’s domestic crude abilities
and take the country towards energy security.