Cairn Oil & Gas, a subsidiary of Vedanta Group, will invest approximately $1 billion in
alkaline-surfactant-polymer (ASP) injection technology. The move aims to increase production from its ageing oil fields in Rajasthan, according to the company’s Chief Financial Officer, Hitesh Vaid.
The company, which currently contributes 25% of India’s oil and gas output, plans to raise its share to 50%.
To achieve this ambitious goal, Cairn will allocate $3-4 billion in capital expenditure over the next three to four years to expand upstream operations and drive production growth.
“Last year, we invested around $400 million in our fields, wells, and expansion activities. Now, with ASP flooding, tight oil development, deepwater, and shale projects, we are targeting $3-4 billion in the coming years,” Vaid said.
Focus on Offshore and Deepwater Expansion
Cairn Oil & Gas is diversifying its portfolio by expanding into offshore exploration and acquiring deepwater blocks. The company aims to go beyond its core onshore assets to meet its production targets.
“Our vision is to contribute 50% of India’s domestic energy production. Currently, we contribute 25%, and we aim to double it by acquiring new acreages,” Vaid emphasized.
Cairn currently holds sixty-two blocks covering approximately 60,000 square kilometers. Five of these blocks are in production, while the rest remain in the exploration phase.
The company is increasing output from new wells. It is also employing advanced recovery techniques. These efforts aim to offset production declines in its mature fields.
“We expect to reverse the declining production trend next year, showing growth both annually and quarterly,” Vaid added.
Venturing into Coal Bed Methane Exploration
Beyond conventional oil and gas, Cairn is also stepping into coal bed methane (CBM) exploration. The company recently acquired a CBM block and plans to start operations within the next eight to ten months.
As reported by energy.economictimes.indiatimes.com, Cairn is expanding into CBM. This move aligns with its broader strategy to diversify energy sources. It also strengthens Cairn’s position in India’s energy sector.
