Cairn Oil & Gas submits plan to begin production from Gujarat block

The oil and gas exploration and production company had notified gas and condensate discovery of Jaya in its onshore OALP block in the Bharuch district of Gujarat in August 2021.

Cairn Oil & Gas has submitted a field development plan (FDP) to produce more than 2,000 barrels of oil equivalent per day from its Jaya block in Gujarat, which has the potential to help meet company's goal of double its production capacity, the Vedanta Ltd subsidiary said on January 11.

This is the first FDP that has been submitted under the Open Acreage Licensing Policy (OALP)regime. The government awarded 144 blocks to various companies under the OALP regime, which provides a single, uniform licence for exploration and production of conventional as well as unconventional hydrocarbon resources.

“We are delighted to have progressed the Jaya discovery to its FDP and are ready to begin production from the Jaya block," Steve Moore, Deputy CEO, Cairn Oil & Gas, Vedanta Ltd, said in a release.

In August 2021, Cairn Oil & Gas discovered gas and condensate in the Jaya field in its onshore OALP block in the Bharuch district of Gujarat. During the appraisal, the company started test gas evacuations through a truck-mounted Compressed Natural Gas (CNG) kit that provided CNG to nearby gas stations. Cairn has signed a commercial gas sales agreement for gas off-take.

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"At Cairn Oil & Gas, driving new exploration is a key pillar as we strive towards our goal of achieving 50% contribution to India’s domestic oil and gas production. This block in Gujarat was one of the initial discoveries for Cairn under India’s Open Acreage Licensing Policy (OALP), and we believe it will contribute to India’s energy requirements,” Moore said.

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Through the FDP for Jaya, Cairn has nurtured a new asset in the Western region that will support holistic economic and sustainable development, it said. The new exploration and production will continue to be the benchmarks of Cairn’s operations to drive energy security for India.