Cairn’s oil block tally increases to 58 across 12 states, establishing the company as largest private exploration acreage holder in country

New Delhi, 16 July 2019: Shri Dharmendra Pradhan, Hon’ble Minister of Petroleum & Natural Gas, and Minister of Steel, today officiated the contract signing for the new exploration blocks awarded to Cairn Oil & Gas, Vedanta Limited. As part of the Open Acreage Licensing Policy (OALP) Round II and III auctions, the government has allotted 10 of 32 oil blocks auctioned in these rounds to Cairn in the states of Andhra Pradesh, Assam, Gujarat, Odisha, and Rajasthan.

The 10 new blocks add another 10,000 square kilometers to Cairn’s portfolio. The addition catapults Cairn to become one of the largest private acreage holders in the country, with more than a tenfold jump in acreage from its existing/producing blocks of c.5,000 sq.km. to c.65,000 sq.km. across its total 58 blocks.

Speaking on the development, Anil Agarwal, Executive Chairman, Vedanta Resources Limited, said, “We congratulate the Government for the successful completion of three rounds of auctions under OALP. The progressive vision of this Government has been key to developing the hydrocarbons industry in India, and we appreciate the faith they have reposed in us. With the sizable and diversified portfolio of the blocks, Cairn will step up its efforts to produce 50% of India’s domestic crude oil. We believe in the hydrocarbons potential of India and this is a huge enabler to lead the nation towards energy security.”

Ajay Kumar Dixit, CEO, Cairn Oil & Gas, Vedanta Limited, said, “We are looking forward to initiate our exploration program in the new blocks as we aim to increase domestic production. With a project management partner on board, and more partnerships in the pipeline, we will aggressively chase new discoveries in these blocks. The Government has been proactive in introducing major policy reforms for the technology and manufacturing sectors, and we are geared to participate and fulfil their vision of tripling the mineral sector output over seven years as announced under the New Mineral Policy.”

In its existing/producing fields, Cairn has already planned investments worth $3.2 billion over the next three to four years, of which contracts worth $2.3 billion have been awarded to ramp up oil and gas production through increased exploration, enhanced oil recovery, and development projects.

In its new fields, Cairn’s initial workplan entails an additional investment of close to $800 million now, which will increase manifold in case of discovery. The new fields will help further Cairn’s ambition to contribute to 50% of India’s crude oil production. Cairn currently contributes close to a quarter of India’s crude oil production.
 

About Cairn Oil and Gas

Cairn Oil & Gas, a vertical of Vedanta Limited, is the largest private oil and gas exploration and production companies in India, accounting for more than a quarter of India’s domestic crude oil production. It has a world-class resource base, with a current interest in 58 blocks in India, including the 41 blocks under the Open Acreage Licensing Policy (OALP) Round I auction, 5 blocks each under Round II and Round III, and two awarded under the Discovered Small Fields (DSF) Round-II. In 2004, Cairn made the largest onshore discovery in more than two decades in Mangala, Rajasthan. In its operations of 20 years, Cairn has opened 4 frontier basins with numerous discoveries; 38 in Rajasthan alone.

Cairn is part of the Vedanta Resources Limited, the world’s sixth largest diversified natural resources conglomerate with interest in oil and gas, zinc-lead-silver, copper, iron ore, aluminium, and commercial power. The company has a presence across India, South Africa, Namibia, Australia, and Ireland. Governance and sustainable development are at the core of Vedanta’s strategy, with a strong focus on health, safety, and environment, and on enhancing the lives of local communities. The company has been conferred the Confederation of Indian Industry (CII) “Sustainable Plus Platinum” label and ranks among the top 10 most sustainable companies in India.

For more information, please visit www.cairnindia.com / www.vedantalimited.com