Cairn Oil and Gas announces its gross Reserves plus Resources exceeding 1.1 billion barrels of oil equivalent
New Delhi: Cairn Oil & Gas a unit of Vedanta Group, has announced that its Reserves and Resources portfolio has crossed 1.1 billion barrels of oil equivalent (Bboe).
The Company’s estimated total gross 2P Reserves plus 2C Resources stand at 1,156 MMboe, of which oil accounts for 85 per cent. The gross hydrocarbons in place across all Cairn’s assets totals approximately 6.7 Bboe of which 1.18 Bboe has been produced as of March 31, 2023. Cairn is defining up to 20 potential new development projects to bring a substantial proportion of the 846 MMboe of gross 2C Resources into production. During the fiscal year ending 31 March 2023, total Reserve plus Resource additions exceeded production, largely due to the award of eight Discovered Small Field (DSF) licenses. This addition resulted in a Resource Replacement Ratio of 108 per cent (As per industry standard the Reserve plus Resource replacement ratio is defined as the ratio of Reserve plus Resource additions to production during the year).
Commenting on the business milestone, Nick Walker, CEO of Cairn Oil & Gas said, “Cairn has a world-class Resource base of over 1.1 Bboe gross, and we continued to sustain the business last year, adding more Resources than we produced. We have significant undeveloped Resources and we’re moving at pace to apply the latest technology to define a portfolio of up to 20 new projects. We’ve also a material exploration position in India and are commencing an exciting exploration drilling program aimed at continuing to grow our Resources. Cairn is committed to increasing India’s domestic oil and gas production, with a vision to contribute 50 per cent of the country’s crude production.”
Cairn has 62 licenses in India, which are estimated to contain over 3 Bboe of gross unrisked Prospective Resources. The Company plans to drill up to 20 exploration wells in the next two years targeting approximately 500 MMboe gross unrisked Prospective Resources.
The Company’s Reserves and Contingent Resources have been audited by DeGolyer and MacNaughton, a third-party independent reserves auditor, with the exception of the Contingent Resources associated with the eight DSF Round III licenses awarded in 2022.