Cairn Cracks Open Gujarat's Gas Potential: FDP Signals Production Boom

Cairn Oil & Gas has officially submitted the Field Development Plan (FDP) to initiate gas production from the Open Acreage Licensing Program (OALP) block located in the Bharuch district of Gujarat. Anticipating an initial production of over 2,000 barrels of oil equivalent per day (boepd), this field represents a significant step towards achieving the company's objective of doubling production capacities.

This milestone marks the first FDP submission under the OALP regime, encompassing 144 blocks awarded across eight OALP rounds by the government to various companies. The Jaya field, in its appraisal phase, has already commenced testing gas evacuations using truck-mounted compressed natural gas (CNG) kits, providing CNG to nearby gas stations. This pioneering approach, where an Exploration and Production (E&P) operator conducts sales through a CNG cascade system from an exploration well, aligns with Cairn's commitment to minimizing gas flaring in accordance with its decarbonization vision. Additionally, this initiative contributes to the monetization of gas and addresses the energy requirements of the country.

Cairn has strategically entered into a commercial gas sales agreement for the off-take of gas. Leveraging advanced rock physics and seismic inversion technology, the company has successfully predicted subsurface sweet spots around the Jaya area, identifying a cluster of prospects.

The August 2021 gas and condensate discovery of Jaya in the onshore OALP block in Gujarat marked a significant achievement for Cairn, a part of the Vedanta group. Through the FDP for Jaya, Cairn has established a new asset in the western region, reinforcing its commitment to exploration and production as integral components of its operational strategy.

News by Rahul Yelligetti