Vedanta Cairn Oil and Gas plans to invest Rs 650 crore to develop Andhra block

Mar 20,2020

Vedanta's upstream subsidiary Cairn Oil and Gas is planning to drill 35 hydrocarbon wells and 10 hydrocarbon processing plants in its Kaza block in Andhra Pradesh at a cost of Rs 650 crore, the firm said in an application to the Ministry of the Environment.

It plans output of up to 30,000 Barrels of Oil per day (BOPD) and 30 Million Metric Standard Cubic Feet (MMSCFD) of gas through the development of block processing facilities.

"The existing projects would be undertaken in a phased way over a duration of up to ten years beginning in 2021. The project will continue implementation only after all the requisite approvals have been obtained. The projected overall cost of the project is about Rs 650 Crores, "it said.

Cairn was awarded an onshore block in the Krishna district last year under a small field round discovered.

Cairn Oil and Gas won more than 51 blocks in the latest oil and gas bidding auctions conducted by the government in the last four years and plans to invest up to $800 million on these blocks in the exploration phase.

Cairn Oil and Gas is in the process of rising output from its current production areas and plans to exit 2019-20 with an output pace of 225 thousand barrels of oil equivalent per day (kboepd).

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