Vedanta’s upstream arm Cairn Oil and Gas plans to drill 78 exploratory wells at a cost of Rs 2,142 crore in a block in Rajasthan, which it had won under the first round of Open Acreage Licensing Programme (OALP).
The RJ-ONHP-2017/3 block is spread across Bhinmal, Bagoda, Raniwara, Sanchor and Chitalwana of Jaore districts of Rajashtan, the company said in an application to the environment ministry. A small part of the block is also located in Gujarat but no exploration activities have been planned by the company in the state for the block.
The project will include setting up of Early Production Units (EPUs) for produced well fluid processing and production up to 32,000 barrel of oil per day (BOPD) and up to 4.8 Million Standard Cubic Feet per Day (MMSCFD) of natural gas.
The company expects to ramp up its overall crude oil and natural gas production by 50 per cent to an average of 260-270 thousand barrels of oil equivalent per day (kboepd) by the end of the current financial year from its current production of 180 kboepd.
The company expects 70 per cent of the increase in oil and gas production to come assets in Rajasthan, Vedanta group CEO Srinivasan Venkatakrishnan said in a stakeholder meeting recently.
The company has commenced an investment of $3.2 billion to monetise 400 million barrels and has deployed 10 development rigs at the site currently. The work programme for the fiscal year includes drilling over 500 wells. Of these, it has already drilled 139 wells and hooked up around 46 wells.
In order to increase production from all of its assets Cairn has tied-up with multiple oilfield service companies including Halliburton, Baker and Hughes GE (BHGE), Schlumberger, Petrofac, Megha Engineering, and L&T.
The company has appointed Lloyd’s Register for integrated project management for the 41 blocks won under the first round of OALP and expects to award project contracts for the blocks soon.Share This