Vedanta Cairn Oil & Gas plans to develop Andhra block
24 March 2020
Vedanta’s upstream arm Cairn Oil and Gas is planning to drill 35 hydrocarbon wells and 10 hydrocarbon processing facilities at its Kaza block in Andhra Pradesh for Rs 650 crore, the company said in an application to the environment ministry. It expects production of up to 30,000 Barrels of Oil per Day (BOPD) and 30 Million Metric Standard Cubic Feet (MMSCFD) of gas through the development of the processing facilities in the block.
“The proposed projects will be implemented in a phased manner up to ten years period starting in 2021. The project will start execution only after obtaining all the necessary approvals. The estimated total project cost is around Rs 650 crores,” it said.
The onshore block situated in the Krishna district was awarded to Cairn last year under the discovered small field round.
It had won more than 51 blocks under the recent oil and gas bidding auctions held by the government in the last four years and intends to spend close to USD 800M in the exploration phase on these blocks.
Cairn Oil and Gas is in the process of ramping up production from its existing producing fields and expects to exit 2019-20 with a production rate of 225 thousand barrels of oil equivalent per day.