Cairn Oil & Gas Acquires Seven New Blocks In Cambay, Saurashtra And Mumbai
The acquisition of the new blocks will enable Cairn to invest in increasing oil and gas exploration and production across the west coast.
Vedanta Group firm Cairn Oil & Gas Ltd. has acquired seven new blocks across Cambay, Saurashtra, and Mumbai in the ninth round of auction under the Open Acreage Licensing Policy.
The acquisition is in line with Cairn's vision to contribute 50% of domestic crude production in India and to expand its exploration and production capacity, Vedanta's press release stated.
The awarded new blocks comprise four onshore and three shallow water blocks located in the hydrocarbon basins of Cambay, Saurashtra, and Mumbai.
With the acquisition, the company is gearing up for rapid expansion on the West Coast of India, the company said, adding that it will enable Cairn to invest in increasing oil and gas exploration and production across the region.
The contract was signed in the presence of Hardeep Singh Puri, Union Minister for Petroleum and Natural Gas, on Tuesday.
With the addition of the new blocks, Cairn’s portfolio has expanded to 69 blocks and covers over 73,000 sq. km. area across the country.
Vedanta Group Chairman Anil Agarwal said, “Today, India’s policies for the hydrocarbons sector are the most attractive in the world. They offer tremendous opportunity and returns on capital.”
Over the past few years, Cairn has been actively participating in OALP auctions to secure more oil and gas blocks to expand its exploration and production capacity.
The company said that it holds 100% participatory interest in all OALP blocks. Additionally, Cairn holds legacy blocks awarded under NELP and pre-NELP regimes.
Shares of Vedanta Ltd. closed 4.08% higher at Rs 395.80 apiece on the BSE, compared to a 2.10% advance in the benchmark Sensex.
However, the company had informed about the exchanges about the development after the stock markets had closed for Tuesday.
