Cairn India's strategy is to establish commercial reserves from strategic positions in high potential exploration plays in order to create and deliver shareholder value. In the implementation of this strategy, Cairn India focuses on material positions that are capable of providing significant growth through exploration.
The company operates the largest producing oil field in the Indian private sector and has pioneered the use of cutting-edge technology to extend production life. Today, Cairn India has a world-class resource base, with interest in India, Sri Lanka and South Africa.
Company philosophy – entrepreneurial spirit
Harnessing a combination of innovation and entrepreneurship, Cairn India is already one of the most significant oil and gas exploration and production companies in India. It is amongst the top 20 global independent E&P companies. These successes have created a company with more than 1,399 employees and world class oil reserves in one of the fastest-growing economies in the world.
Today, Cairn India has operations in Rajasthan, Andhra Pradesh and Gujarat.
The company operates the largest producing oil field in the Indian private sector and has pioneered the use of cutting-edge technology to extend production life. Cairn India sells its oil to major refineries across India and its gas to both public and private buyers.
In Rajasthan, post Government of India (GoI) approval for higher Mangala offtake of 150,000 bopd, production from the block is currently at 175,000 bopd. A stronger Joint Venture (JV) partnership and GoI support has helped produce and deliver more than 145 million barrels to Indian refiners since commencement of production.
Cairn India and its JV partner ONGC have set up the Mangala Processing Terminal in Barmer to process the crude from the Rajasthan fields. A continuously heated and insulated pipeline has also been constructed to transport the crude from Barmer to Bhogat in the coast of Gujarat. The pipeline section from Barmer to Salaya is operational and sales have commenced to private refiners and IOC.
In Andhra Pradesh from the Ravva field, the average gross production for FY2012 was 36,379 boepd — comprising an average daily oil production of 27,165 barrels and an average daily gas production of 55 million standard cubic feet (mm scf). The field has produced more than 245 mm bbls of crude and 300 billion cubic feet (bcf) of gas — more than double the initial estimates. This demonstrates how technology can play a central role in accessing new reserves and transforming the economic landscape in the region.
In Gujarat from the Cambay basin, the average gross production for FY2012 was 8,242 boepd — comprising an average daily crude oil production of 5,204 barrels and an average daily gas production of 18 mm scf. CB/OS-2 block in the Cambay basin is an example of optimal asset utilisation.
In India, Cairn has made 40 oil and gas discoveries. Three out of the seven landmark discoveries in India in the last decade have been made by Cairn. In January 2004, Cairn discovered the largest onshore oilfield in India since 1985 – the Mangala field in Rajasthan. To date, 25 discoveries have been made in Rajasthan.
Working in partnership to provide energy for the future
Working with the Government of India, State Governments and the joint venture partners for more than a decade, Cairn India has developed an in-depth understanding of the regulatory environment and, more importantly, has laid the foundations for the strong relationships that are needed to help provide some of the energy needs of one of the fastest-growing nations in the world.
Cairn India aims to make a positive impact wherever it operate, not just for Cairn India employees but for their families and the wider community.
Unlocking the potential to deliver continued growth
This entrepreneurial spirit is underpinned by a depth of knowledge and strong set of cultural values. More than 80% of Cairn India's employees are professionally qualified and are led by a seasoned management team with substantial experience. They have a passion for the business and in a fast-moving environment, they are expected to adapt to change, to use their technical and commercial acumen to manage risk and uncertainty and to make ‘brave' decisions in the pursuit of Cairn India's vision.
Cairn has maintained a low-cost operating base by focusing on life-cycle planning, continuous monitoring and control of operational costs and the innovative application of operating technologies.
Maintaining low operating costs and sustaining production from existing fields
Maintaining Cairn India's low operating cost base through efficient operations is critical. Its strategy is to focus on life-cycle planning and continuous monitoring and control of operational costs as well as applying innovative operating concepts and technologies.
For example, in the Ravva field, Cairn India and its JV partners completed an infill drilling and work-over campaign at Ravva. This has helped to slow the rate of production decline. The campaign also met its target to increase water injection capacity in the field, which is important from the perspective of reservoir and environmental management.
Similarly, in the Cambay basin, to sustain oil production from the block, the Company intends to execute an infill drilling campaign in the Lakshmi field in the near future.
Cairn India’s Vision is:
- Become a global, world class E&P company
- Establish a diversified & sustainable portfolio
- Deliver long term value to host Governments, Local Communities and all stakeholders