Cairn Oil & Gas signs decade-long Production Sharing Contract (PSC) for its prolific Rajasthan block
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.