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CAIRN

Oil&Gas
OVERVIEW

• Cairn India is the largest private sector producer of crude oil in India
currently producing from assets in Rajasthan, Andhra Pradesh and Gujarat.

• Its exploration strategy is based on a portfolio of high reward prospects


across the risk spectrum. It believes in investing in advanced geological and
geophysical technologies to enhance the probability of exploration success,
and monetise its hydrocarbon resources.
OPERATED
PRODUCTION
1,85,587
• Cairn India currently produces oil and gas from three
boepd in FY 2018
blocks in India: Ravva in Andhra Pradesh, CB-OS/2 in
Gujarat and RJON-90/1 in Rajasthan.
BLOCKS IN INDIA
46 • . In 2007, Cairn India was listed on the
National Stock Exchanges and as on date has a market
capitalisation of ~$14 billion and amongst the top 25
Indian company in the NIFTY 50 index.
RESOURCE BASE
1.3
billion barrels • Cairn plans to invest $3 billion in the next three years in
finding more oil and raising output from Rajasthan
oilfields.

DISCOVERIES
MADE
50
HISTORY

• Cairn Energy was founded in 1981 by Sir Bill Gammell,a former international Rugby player​
• It's initial operations were in the USA​
• It expanded into the UK North Sea and internationally​
• Cairn acquired Conoco's UK onshore acreage in 1988 and became one of the
largest operators of UK onshore oil production​
• Cairn India  is now a subsidiary of Vedanta Resources following a merger in 2017​
• Formerly a subsidiary of its parent company, Cairn Energy PLC, which is one of
Europe’s leading oil and gas exploration and development companies​
Current Operations in India

RAJASTHAN

ANDHRAPRADES
GUJARAT
H
RAJASTHAN

• The Rajasthan block, is spread over 3,111 km2 in the Barmer district. ​
• 13 dry wells were drilled in Rajasthan before Cairn struck oil in the 14th well. ​
• The block has contributed USD 15.1 billion to the nation and the state exchequer as on June
30, 2018. ​
• The cumulative production from the Rajasthan block has crossed 500 mmbbls. ​
• Mangala, Bhagyam and Aishwariya (MBA) are the three largest finds in Rajasthan. ​
• The Mangala field, considered to be the largest onshore hydrocarbon find in India in last
two decades, was discovered in January 2004. ​
• The world’s largest Alkaline Surfactant Polymer (ASP) flood project is also under
implementation here. ​
• The Mangala Processing Terminal (MPT) is spread over 1.6 km2 and is a core asset processing
crude oil produced from Rajasthan. After processing, the crude oil is transported to refineries through
a continuously heated and insulated pipeline. ​
GUJARAT

• Cairn operates in the Lakshmi and Gauri oil and gas fields in Cambay, Gujarat. ​
• Production of gas commenced in the Lakshmi gas field in 2002 followed by the Gauri field
in 2004. ​
• Cambay has produced approximately ~34 million barrels of crude oil and more than ~242
billion cubic feet of natural gas. ​
• An 82-acre onshore processing facility at Suvali processes natural gas and crude oil from
the Lakshmi and Gauri fields. It can process 150 mmscfd of natural gas and
~15,000 boepd of crude oil. It includes three-stage separator trains, three storage tanks
with total capacity of ~37,300 bbls, as well as two ~4.8 MW captive power generation
plants. ​
•  National Safety Award (Mines), 2014​
ANDHRA PRADESH
• The production of hydrocarbons commenced in Ravva block in Andhra Pradesh in March 1993.
• The field has pioneered many operational firsts in India, such as the time lapse (4D) seismic technology,
and using an Ocean Bottom Cable (OBC) seismic survey. 
• The block has produced more than ~286 million barrels of crude oil, and more than ~350 billion cubic feet
of natural gas. 
• A 225-acre onshore processing facility at Surasaniyanam processes natural gas and crude oil from the
Ravva field.
• Currently, eight unmanned offshore platforms are operational. The Ravva onshore terminal  has the
capacity to handle 70,000 barrels of oil per day (boepd), 95 million standard cubic feet per day (mmscfd)
of natural gas and 110,000 barrels per day of injection water. The terminal also has the capacity to store
one million barrels of crude oil onshore, and has a 10 MW captive power generation plant.
• The block has received an International Safety Award from the British Safety Council, and the Golden
Peacock Occupational Health & Safety Award, 2017.
TECHNOLOGIES DEVELOPED

SKIN EFFECT
HYDRAULIC ENHANCED OIL HEAT
3D SEISMIC
FRACTURING RECOVERY MANAGEMENT
SYSTEM
3D SEISMIC IMAGING

• 3D seismic technology provides detailed information about geophysical fault distribution


and subsurface structures, to build high resolution geological models of an area of interest
in oil and gas exploration. Cairn has introduced state-of-the-art seismic imaging technology
in the structurally complex central basin high area of the Rajasthan block. Mapping the
new seismic image provided structural enhancement and detailed reservoir architecture
for the Raageshwari area, and has been key for reducing development drilling risks.
HYDRAULIC FRACTURING

• Over the past decade, Cairn has extensively utilised hydraulic fracturing, or fracking, as a
key technology to appraise and develop tight oil and tight gas fields. Hydraulic fracturing is
a method of creating fractures emanating from the well bore to provide highly conductive
flow paths that maximise hydrocarbons production. Cairn has also been at the forefront of
successfully fracking in volcanic gas reservoir systems, and has executed one of the biggest
commercial developments of tight volcanic reservoirs in the world. This included advanced
fracture diagnostics and application of limited entry fracturing to maximise reservoir pay
coverage from 60% to 85%.
ENHANCED OIL RECOVERY

• Enhanced Oil Recovery (EOR) is a term for special techniques used to increase the amount
of crude oil that can be extracted from a field, over and above conventional primary
depletion, or basic water flooding, which typically will recover 20-40% of the Stock Tank Oil
Initially In Place (STOIIP). EOR is used for improving oil recovery, particularly in older and
declining oil reservoirs.
SKIN EFFECT HEAT MANAGEMENT
SYSTEM
• A dedicated state-of-the-art Skin Effect Heat Management System (SEHMS) and power generation
infrastructure has been deployed all along the pipeline to maintain optimum temperature
requirements for uninterrupted flow of crude oil. The pipeline has been in operation since June 2010.
Its heat output meets all design requirements and is highly reliable.
• Cairn built the Mangala Development Pipeline (MDP), which is the world’s longest continuously
heated and insulated pipeline (670 km), starting from the Mangala Processing Terminal to the Gujarat
coast in Bhogat via Salaya, for transporting crude oil.
• The pipeline passes through eight districts and more than 250 villages. In addition, there are four
branch lines ranging from 2.5 km to 21 km, delivering crude to locations en route. 
• The MDP is not a conventional pipeline. Its technological ingenuity was necessitated on account of
the waxy nature of crude oil. The challenge was to ensure that the crude oil remains above the Wax
Appearance Temperature (WAT) of 65°C throughout its entire length. This required Cairn to build a
continuously heated and insulated pipeline to maintain mobility and flow through over the oil’s
movement through the entire length of the pipeline.
ALKALINE SURFACTANT POLYMER

• Alkaline-Surfactant-Polymer (ASP) flooding is a method whereby alkali, surfactant, and


polymer are injected into the reservoir to flush out crude. Polymers increase the viscosity
of injected water, which improves macroscopic sweep efficiency by stabilizing the
displacing front and counteracting heterogeneity effects. Surfactants, on the other hand,
decrease the interfacial tension between the injected water and crude oil, which improves
microscopic displacement efficiency by mobilizing trapped oil. Alkaline chemicals generate
soap when reacting with crude oil, which reduces surfactant adsorption to grain surfaces.
PRODUCTION
VISION

•  The GOI is deeply committed towards driving the country to become energy independent
and reduce India’s energy imports by 10% by 2022, and 50% by 2030. Cairn’s vision is to be
a responsible oil and gas exploration and production leader to continue to play an active
role in supporting India in its energy-independence journey.
• On October 1, 2018, Cairn was formally awarded 41 out of all 55 blocks it bid for, under
Round I of the new Open Acreage Licensing Policy (OALP) auction.
• With the addition of 41 new blocks, Cairn's acreage is now ~50,000 sq km, catapulting its
position to be one of the largest exploration startups globally. Cairn aims to simultaneously
expedite exploration and production from the new blocks and achieve its mission to take
its overall production to 500 kboped.
• Cairn Oil & Gas is at the cusp of exponential growth, with a vision to contribute 50% of
India’s total domestic crude production. The company is set to invest 15% of the $40 billion
that India will pump into the upstream oil and gas sector over the next five years.
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gogoi Rabha Gogoi
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