Cairn to partner US oil services consortia to develop Indian blocks
This August, Vedanta won 41 of the 55 blocks auctioned under India’s first licensing round for small discovered fields
Mumbai: Vedanta Ltd’s Cairn Oil and Gas business wants US oilfield services companies to set up consortia to help the company develop the 41 blocks it has won in India this year. Parent Vedanta Resources Plc chairman Anil Agarwal and Cairn chief executive Sudhir Mathur met with executives from around 70 oil services companies this week in Houston to encourage the firms to organise into consortia to compete for contracts, according to a Reuters report.
“We fully support India’s drive to become self-sufficient in energy resources by 2030. We strongly believe in India’s growth prospects, in the country’s huge oil and gas potential and will commit the investment needed over the next five years in the upstream activities,” Agarwal said in a press statement.
This August, Vedanta won 41 of the 55 blocks auctioned under India’s first licensing round for small discovered fields. It expects the blocks will eventually produce 500,000 barrels per day of oil equivalent.
“With the allocation of these new blocks, the company is looking to partner with global exploration and production and technology companies to expedite the exploration works for its newly awarded 41 blocks,” Cairn said.
Some of the acquired blocks are close to Cairn’s existing fields and could be put to production in nearly 12-18 months after award of contracts, Cairn said.
“We are gearing up for a new, extended phase of growth with considerable investments in our brownfield, as well as greenfield blocks. The best technology and expertise will be critical to fast-track this process and realise our vision to achieve energy security for India,” said Mathur.
The company is investing $4 billion in its flagship Barmer oil block in Rajasthan. The Delhi high court last month allowed a 10-year extension to the block on the condition that it pays a higher share of profit to the government. The extension results in an overall increase of oil and gas reserves of 400 billion barrels and a production of 125,000 barrels.
Currently, Cairn accounts for over 25% of India’s domestic crude oil production.