Cairn discovers oil in Rajasthan block

New Delhi: Vedanta group firm Cairn Oil & Gas on Monday announced an oil discovery in a Barmer district block of Rajasthan, not very far away from its prolific oilfield in the same desert.

In a stock exchange filing, the firm said it has notified the government and the Directorate General of Hydrocarbons (DGH) of the discovery in exploratory well WM-Basal DD Fan-1 drilled in OALP Block RJ-ONHP-2017/1. The discovery has been named 'Durga'. The firm said the approval of the block oversight panel, called the Management Committee, has also been sought.

The block is one of the 41 areas that the company had won in the first round of the open acreage licensing policy (OALP) bid round in October 2018. Cairn Oil & Gas, a unit of Mumbai-listed Vedanta Ltd, holds 100 per cent participating interest in the block.

"Durga-1 (earlier WM-Basal DD Fan-1) is the second well drilled in the Block RJ-ONHP-2017/1 to a depth of 2615 meters. This is the third hydrocarbon discovery notified by the company under the OALP portfolio. During the drilling of the well, four hydrocarbon zones were encountered in the Dharvi Dungar (DD) formation of Late Paleocene to Early Eocene age," it said.

The 542 square kilometre RJ-ONHP-2017/1 Block is located in Gudamalani and Chohtan Tehsil of Barmer district, Rajasthan. The block lies in the vicinity of the prolific Rajasthan block which produces about 150,000 barrels per day of oil and gas. Separately, the company said it is committed to achieving net-zero carbon emissions by 2050.

"The company is committed to investing $4 billion over 3-4 years to double its production, and the newly announced ESG (environmental, social, and corporate governance) roadmap will enable the company to achieve this vision sustainably," it said in a statement. Vedanta founder and chairman Anil Agarwal said, "Our oil and gas business is today well-poised to meet India's energy needs and growth aspirations." "Guided by the philosophy of 'zero harm, zero waste, zero discharge', we have formulated robust ESG targets for our operations which will help India's energy sector become more efficient and enable the country's journey towards aatmanirbharta," he added.