Cairn Oil & Gas, a Vedanta Ltd unit, has secured approval from the government to extend the production sharing contract (PSC) for its Rajasthan block for ten years until May 2030. The firm says this contract extension will spur capex investment and encourage private players entering the sector.
“This extension will be a key determinant in our goal of doubling production, and help India achieve energy atmanirbharta. Home to prolific fields, the bloc demands extensive investment in technologies to enhance recovery. The field also carries potential for new explorations," Prachur Sah, Deputy CEO, Cairn Oil & Gas said.
The Rajasthan block is of crucial national significance and is home to a number of technology firsts. The field has been the first in the country to apply micro seismic hydrofrac monitoring technology and has also executed the world’s largest jet-pump operation. It is also home to the world’s largest enhanced oil recovery (EOR) polymer flood project and the world’s largest Alkaline Surfactant Polymer (ASP) project.
The field also marks the starting point of the Mangala pipeline – the world’s longest continuously heated and insulated pipeline-that carries crude from the fields of Rajasthan to refineries in Gujarat.
Cairn Oil & Gas recently won eight oil blocks and one coal-bed methane (CBM) block under the DSF Round III bids, taking the company’s total assets in the country to 62.
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