The Kaza block was bagged by Cairn Oil and Gas during the DSF Bid Round – II held by the Indian government in early 2019
Cairn Oil and Gas to invest $87m to develop Kaza Block. (Credit: Pixabay/skeeze)
Cairn Oil and Gas, the upstream business of Vedanta, plans to invest about INR6.5bn ($87m) to develop the onshore Kaza block in the South Indian state of Andhra Pradesh.
The company aims to draw up to 30,000 barrels of oil per day (BOPD) and 30 million metric standard cubic feet (MMSCFD) of gas from the block.
In this connection, the company intends to drill 35 hydrocarbon wells and 10 hydrocarbon processing facilities at the Kaza block, as per an application it filed with the Indian environment ministry, The Economic Times reported.
Cairn Oil and Gas, in a statement, said: “The proposed projects will be implemented in a phased manner up to ten years period starting 2021. The project will start execution only after obtaining all the necessary approvals.”
Located in the Krishna district, the Kaza block was bagged by Cairn Oil and Gas during the Discovered Small Fields (DSF) Bid Round – II held by the Indian government in early 2019.
Cairn Oil and Gas won more than 51 blocks in the last four years
Over the last four years, the Vedanta subsidiary won over 51 blocks through various oil and gas bidding auctions carried out by the Indian government. Cairn Oil and Gas plans to allocate nearly $800 million for undertaking exploration activities in the blocks.
In July 2019, the company won 10 exploration blocks contained in sedimentary basins in India at a total bid cost of $245m under the Indian Open Acreage Licensing Policy (OALP). The awarded blocks comprise seven onshore concessions and three offshore blocks.
Cairn Oil and Gas is also said to be focused on boosting production from its existing producing fields with a target to achieve 225 thousand barrels of oil equivalent per day (kboepd) by the end of the 2019-2020 season.