Guwahati, April 22: Cairn Oil and Gas, a subsidiary of the Vedanta Group, has announced that it has started test production from its Hazarigaon field in Assam, the first northeast block auctioned under the Discovered Small Fields (DSF) policy to be put to production.
Cairn has a deal with Assam Gas for supplying 3.5 million cubic feet of gas per day, which will be supplied to industries, including tea gardens, through the Assam Gas Company Ltd.
Additionally, truck-mounted cascades will be used to supply gas for operating 100 CNG buses plying in Guwahati. A CNG station at Hazarigaon well site at Naharbari in Golaghat district was inaugurated by Chief Minister Hemanta Biswa Sarma to mark the start of test production.
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Cairn has plans to drill five to ten exploration wells in the next two years across the state’s Jorhat and Tinsukia districts. The company holds 12 blocks offered under the Open Acreage Licensing Policy and three Discovered Small Fields blocks in the Assam-Arakan basin in the region.
The region holds significant potential and is a key focus for Cairn, according to CEO Nick Walker, who said that with government support, infrastructure, and fast-tracked approvals to continue exploration activities, the region can support India’s vision to be self-reliant in oil and gas.
The acreage has a significant resource potential of up to 1 billion barrels of oil equivalent. Cairn has also conducted large-scale airborne gravity magnetic and seismic surveys for exploration. However, the daily output was not quantified in the company’s statement.
The production of gas from the first block under the DSF policy marks a significant milestone for Cairn and the oil and gas industry in the region. This is expected to have a positive impact on the state’s economy by creating employment opportunities and boosting local businesses.
The move towards self-reliance in oil and gas will also have a positive impact on India’s economy and energy security. With the support of the government, the exploration and production of oil and gas in the region can unlock significant potential for economic growth and development.
