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Vedanta's Cairn Seeks $5 Billion US Partnerships To Unlock India's Shale Potential And Scale Output To 1 Million Barrels: Report

Vedanta's Cairn Seeks $5 Billion US Partnerships To Unlock India's Shale Potential And Scale Output To 1 Million Barrels: Report

Swarajya 1 month ago

Cairn Oil & Gas, the energy arm of Vedanta Limited, is seeking American expertise to develop India's nascent shale sector.

Cairn executives are in Houston this week looking to spend as much as $5 billion with oilfield contractors who will help the company develop fields at home that include shale formations, Vedanta Chairman Anil Agarwal said during an interview.

The move marks a significant step in India's efforts to reduce its dependence on imported energy resources.

Vedanta Ltd. 's Cairn Oil & Gas is looking to quadruple daily output to the equivalent of 1 million barrels over the better part of the next decade as the country's largest private sector oil producer expands its operations.

The company, which contributes over 25 per cent of India's annual production of oil and gas, has already been bringing international talent to its operations, including specialists in tight oil, gas and shale development.

Cairn plans to explore shale potential in the deeper graben formations of Rajasthan, where the company operates its largest onshore asset in the Barmer region.

The company plans to drill at least three to six shale wells there, with a rig already contracted to drill those wells and expected to arrive in India soon. Initial estimates suggest the Barmer region holds substantial in-place shale reserves.

The push into shale development comes as India seeks to enhance its energy security.

In a market where over 85 per cent of oil and 54 per cent of gas demands are met with imported resources, Cairn Oil & Gas plays an active role in reducing the country's import burden by producing oil and gas locally.

The company has partnered with American oilfield services firms including Halliburton to begin shale exploration using techniques honed in the United States shale boom.

Cairn's strategy involves leveraging American drilling technology and expertise to unlock unconventional resources.

The company operates 58 blocks across India with gross reserves exceeding one billion barrels of oil equivalent.

The Houston meetings represent a crucial step in securing the technical capabilities needed to commercialise India's shale potential, which has remained largely untapped despite significant estimated reserves in various basins across the country.

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