Cairn Oil and Gas, a prominent player in India’s oil and gas sector and a subsidiary of Vedanta, has teamed up with Norway’s Electromagnetic Geoservices (EMGS) to utilize cutting-edge 3D Controlled Source Electromagnetic (CSEM) survey technology. This innovative approach aims to enhance exploration efforts within the Krishna-Godavari (KG) deepwater block, located off the eastern coast of India.
This strategic initiative is set to improve the understanding and prioritization of the vast offshore exploration potential in the KG block. By combining the newly acquired CSEM data with recently reprocessed 3D seismic data, Cairn aims to refine subsurface models and significantly mitigate exploration risks.
Ambitious Exploration Goals
Cairn’s operational area encompasses over 4,500 square kilometers in the KG basin, with water depths ranging from 500 to 2,500 meters. The company has set its sights on commencing drilling operations in 2026 across a 3,600 square kilometer section of the block, which features four existing gas discoveries and a wealth of prospects estimated in the multi-trillion cubic feet (TCF) range.
- Drilling Timeline: Targeting operations by 2026
- Block Size: 4,500 sq km of offshore territory
- Water Depths: Ranging from 500m to 2,500m
- Gas Discoveries: Four confirmed with significant potential
Hitesh Vaid, the Chief Financial Officer of Cairn Oil and Gas, remarked, “We are leading the charge in adopting advanced technologies for effective exploration and production in India’s upstream sector. Our collaboration with EMGS will significantly accelerate the development of the deepwater block, aligning with our goal to contribute 50% of India’s oil and gas production.”
Cutting-Edge Geophysical Techniques
EMGS, recognized as a global frontrunner in marine electromagnetic surveys, has been instrumental in aiding major energy companies with critical subsurface data. Their specialized vessel, the Atlantic Guardian, is currently engaged in operations within the KGDWHP-2017/1 block, employing the advanced “Deep Blue” source system. The data acquisition phase is expected to last several weeks, followed by comprehensive data processing and analysis.
CSEM technology serves as a vital tool for mapping subsurface resistivity, which enhances the precision of hydrocarbon detection. Sam Algar, the Chief Exploration Officer at Cairn, emphasized, “The data we gather will pinpoint exploration and appraisal locations, ensuring our drilling decisions are informed by the most accurate subsurface insights. With EMGS’s expertise and the latest in CSEM technology, we are well-positioned to unlock the hydrocarbon potential of the KGDWHP-2017/1 block.”
Strategic Alliances and Future Investments
Cairn has also established a significant partnership with TechnipFMC to expedite the development of integrated subsea infrastructure for upcoming deepwater projects. Vaid previously disclosed the company’s plans to invest $3–4 billion over the next three to four years, aiming to expand its upstream operations and stimulate growth.
Beyond its established production bases in Rajasthan, Gujarat, and Andhra Pradesh, Cairn is increasingly focusing on the Northeast of India, recognizing the region’s untapped potential. The company anticipates greater involvement from international oil and gas firms, especially following recent reforms to the Oilfields Regulation and Development Act, which aim to enhance private sector participation in India’s hydrocarbon landscape.
Looking Ahead
Cairn’s growth strategy encompasses a diverse range of projects, including deepwater drilling, tight oil, Alkaline-Surfactant-Polymer (ASP) methods, shale exploration, and Northeast initiatives. The company is actively seeking partnerships with global oil and gas entities that possess expertise in these areas, further strengthening its position in the market.
Currently, Cairn contributes 25% to the nation’s domestic crude oil output, with ambitious plans to double this figure. The company is also addressing output declines from its mature fields, with hopes of reversing this trend in the upcoming year and showcasing consistent growth both annually and quarterly.
By embracing innovative technologies and forging strategic alliances, Cairn Oil and Gas is poised to significantly impact India’s energy sector, ensuring a sustainable and prosperous future in oil and gas exploration and production.
