Cairn Oil & Gas has secured approval from the Ministry of Petroleum & Natural Gas (MoPNG) to extend the production sharing contract (PSC) for its Rajasthan block by 10 years till May 2030.
The Rajasthan block, with 38 discoveries to date, has total in-place hydrocarbons of 5.9 billion barrels of oil equivalent (bboe). It has cumulatively produced more than 700 million barrels of oil equivalent (mmboe) in the last decade. This contract extension will spur Capex investment and encourage private players, the company said in a statement.
The Rajasthan block is also home to the company’s shale exploration, and it is confident that this contract will enable it to streamline operations and enhance investment in the block, he added.
The company’s growth pivots on three strategic levers, including increasing production from existing blocks through investments and partnerships, exploring unconventional energy sources, such as shale, and encouraging new exploration and discovery of oilfields.