Vedanta’s Subsidiary Cairn Oil & Gas Boasts Significant Resource Growth

Cairn Oil & Gas, a subsidiary of Vedanta Ltd. and India’s largest private oil and gas exploration and production company, announced impressive growth in its resource portfolio on May 13, 2024.

Expanding Reserves and Resources

• Year-on-Year Growth: Cairn’s Reserves and Resources (R&R) portfolio has witnessed a substantial 19% year-on-year increase, reaching 1.4 Bnboe (billion barrels of oil equivalent). This growth highlights the company’s expertise in resource evaluation and development planning.
• Promising Exploration Potential: In addition to the robust R&R portfolio, Cairn boasts a promising exploration portfolio with over 5 Bnboe of prospective resources. This potential resource pool holds significant promise for driving India’s energy self-reliance.

Resource Replenishment and Domestic Production Enhancement

• Surpassing Production: Cairn’s total Reserve plus Resource additions have significantly exceeded production levels. This translates to a Resource Replacement Ratio (RRR) of 533%, a remarkable five-fold increase over the previous year’s RRR of 108%.
• Increased Gross Contingent Resources: Cairn’s Gross Contingent (2C) resources have witnessed a substantial 33% year-on-year growth, reaching 1,126 Bnboe. This signifies a larger pool of potentially recoverable oil and gas resources, paving the way for increased domestic production and enhanced cash flow generation for the company in the future. This growth aligns with the national goal of Aatmanirbhar Bharat (Self-reliant India).

Looking Ahead

With a robust portfolio of 62 blocks covering over 60,000 sq kms across India, Cairn plans to drill up to 20 exploration wells by 2025. These efforts target approximately 500 MMboe (million barrels of oil equivalent) of gross unrisked prospective resources.

Cairn Oil & Gas’s significant resource growth and strategic focus on sustainability position the company for a future of continued success and contribution to India’s energy security.

“With our growing resource base, now at 1.4 Bnboe, and world-class technology expertise, we are underlining our commitment to creating long-term value for our stakeholders. This is reflected in our strategic management plan, which ensures a sustainable future for our company to continue driving our vision of a self-reliant India for its energy requirements. By focusing on exploration success and resource conversion, we are building a robust reserve base for continued growth and shareholder value.” said Dr Steve Moore, Deputy CEO of Cairn Oil & Gas.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.