Cairn Oil & Gas Reserves & Resources (R&R) Grows 19% YoY to 1.4 BBOE
New Delhi, 14th May 2024: Cairn Oil & Gas, India’s largest private oil and gas exploration and production company, part of Vedanta Ltd., has announced that its Reserves and Resources (R&R) portfolio has recorded a year-on-year increase of 19% reaching 1.4 billion barrels of oil equivalent (Bboe) underpinning its expertise in resource evaluation and development planning. In addition to this robust portfolio, Cairn has a promising exploration portfolio that holds over 5 Bboe of prospective resources, to help drive India’s energy self-reliance.
Cairn’s total Reserve plus Resource additions have exceeded production, leading to a Resource Replacement Ratio (RRR) of 533%, a five-fold increase over the RRR of 108% in the previous fiscal year. Cairn has recorded a substantial increase in its Gross Contingent (2C) resources to 1.126 Bboe, a year-on-year growth of 33%. This signifies a larger pool of potentially recoverable oil and gas, fueling future production and cash flow generation for the company, and increased domestic production for Aatmanirbhar Bharat.
Commenting on the achievement, Dr. Steve Moore, Deputy CEO, Cairn Oil & Gas, said: “With our growing resource base, now at 1.4 Bboe, and world-class technology expertise, we are underlining our commitment to creating long-term value for our stakeholders. This is reflected in our strategic management plan, which ensures a sustainable future for our company to continue driving our vision of a self-reliant India for its energy requirements. By focusing on exploration success and resource conversion, we are building a robust reserve base for continued growth and shareholder value.”
“By prioritizing long-term sustainability and resource conversion, Cairn has positioned itself as a leader in responsible oil and gas exploration and production. Our focus on responsible resource management, future-proofing our operations, and ensuring long-term value creation is at the heart of our strategy to deliver on our goal of contributing to 50% of India’s oil and gas production,” he further added.
Cairn Oil & Gas Hydrocarbon R&R estimates
Building on its track record of optimizing production and exploring new reserves, Cairn has also announced a strategic resource management plan that prioritizes long-term sustainability and value creation for investors.
The new plan will focus on maximizing production from existing reserves to ensure consistent revenue streams, while exploration activities will lay the groundwork for future growth. There will be a renewed emphasis on new discoveries in promising basins that will expand Cairn’s resource base and position it for long-term production.
Cairn has a portfolio of 62 blocks covering an acreage of more than 60,000 sq kms in India. The company plans to drill up to 20 exploration wells by 2025 targeting approximately 500 MMboe gross unrisked prospective resources.
Disclaimer: This press release serves for informational purposes only and does not constitute professional advice. Any reliance on the information provided is at the reader’s discretion.