Cairn Oil & Gas said on Thursday it has secured approval from the Ministry of Petroleum & Natural Gas (MoPNG) to extend the production sharing contract (PSC) for its Rajasthan block by 10 years till May 2030.
The Rajasthan block, with 38 discoveries till date, has total in place hydrocarbons of 5.9 billion barrels of oil equivalent (bboe). It has cumulatively produced more than 700 million barrels of oil equivalent (mmboe) in the last decade. This contract extension will spur capex investment and encourage private players, the company said in a statement.
Cairn Oil & Gas CEO, Prachur Sah, said: “This extension will be a key determinant in our goal of doubling production capacities, and helping India achieve energy atma nirbharta. Home to prolific fields, the Rajasthan block demands extensive investment in technologies to enhance recovery. The field also carries potential for new explorations.”
The Rajasthan block is also home to the company’s shale exploration, and it is confident that this contract will enable it to streamline operations and enhance investment in the block, he added.
“We are firm in our overall vision of contributing 50 per cent to India’s domestic crude production, and we will do this by committing an investment of $5 billion and achieving production of 500,000 barrels of oil equivalent per day (500 kboepd),” Sah said.
Cairn Oil & Gas recently won eight oil blocks and one Coal-Bed Methane (CBM) block under the DSF Round III bids, taking its total assets in the country to 62. These gains have been in line with the company’s aim to double capacities.
The company’s growth pivots on three strategic levers, including increasing production from existing blocks through investments and partnerships, exploring unconventional energy sources, such as shale, and encouraging new exploration and discovery of oilfields.