Cairn Oil and Gas, India's largest private sector crude oil producer, has announced plans to invest up to $600 million or Rs 5,220 crore in financial year 2026, to ramp up production from their oil fields in Barmer, Rajasthan, and undertake drilling activities for shale and tight gas in the region.
The company, a subsidiary of Vedanta Ltd., will also focus on enhanced oil recovery techniques, including the use of polymers and surfactants, to increase the recovery rate from its existing fields.
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The company expects to increase oil recovery to over 50% from existing 35%, using a new Alkaline Surfactant Polymers technology for oil recovery, Hitesh Vaid, chief financial officer of Cairn Oil and Gas, told NDTV Profit in an exclusive chat.
One of the key focus areas for the company is the Mangala and Aishwarya oil fields in Barmer. "The volumes will start to accrete this year that will be spread to other areas in Rajasthan later on," Vaidya said.
Cairn Oil and Gas has a total capital expenditure plan of $4 billion over the next four years, with a significant portion of this investment going into drilling and exploration activities. In the last year alone, the company has spent $450 million on various projects.
Bullish On North East And Deepwater Offshore
The planned investments on drilling are expected to pick up pace, particularly in shale and offshore deepwater discoveries. The company's focus on shale and tight gas discoveries is significant, given the potential for these resources to contribute to India's energy security. Every year, Cairn Oil drills on average 70 wells that is going to increase with planned activities, he said.
"We plan to drill five to six wells on the East Coast of India in the prolific KG Basin in Andhra, and are very bullish on the North-East, where we have won few onshore blocks," Vaidya said.
The company plans to replicate the success of Rajasthan in North East and hopes to make it 'New Rajasthan', given the reserves and potential of its monetisation. "We are hopeful to find a good market for the oil and gas discovered there," the CFO said.
With its aggressive investment plans and focus on new technologies, Cairn Oil and Gas is well-positioned to play a key role in meeting India's growing energy demands. The company's commitment to increasing production from its existing fields, while also exploring new resources, is a positive development for the Indian energy sector.
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