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Cairn Oil & Gas on Friday said that it has commenced test production from its Hazarigaon field in Assam, becoming the first company in the North-East to commence gas flow from a Discovered Small Field (DSF) block.
The gas produced by Cairn Oil & Gas is evacuated through a main trunk pipeline, and a gas cascading system to Assam Gas Company (AGCL), the company, a unit of Vedanta, said.
The gas evacuation from the field will be used by tea growers among other industries. Additionally, the gas cascading system will enable gas from Hazarigaon to be a prime contributor in fuelling 100 CNG buses that will be plying in Guwahati as part of the clean energy initiative of Government of Assam, it added.
Focus on N-E
Cairn Oil & Gas CEO Nick Walker said, “The North-East region holds significant potential and is a key focus for us at Cairn Oil & Gas as we move towards our goal of doubling production and supporting energy security for the country. Our partnership with the Government of Assam will not only drive the State’s clean energy transition, but also contribute to its overall economic development.”
The State has a significant potential for unlocking hydrocarbon reserves and 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, he added.
Also read: Hindustan Zinc has not shelved plans to acquire Vedanta’s overseas mines: Arun Misra
Assam and the North-East region remains a top priority for Cairn, which is committed to investing in developing oil and gas resources that will provide energy supply to many ancillary industries. The company plans to drill 5 to 10 high impact exploration wells in the next two years across the Golaghat, Jorhat and Tinsukia districts of Assam.
Cairn holds 7,650 sq km in Assam Arakan Basin with 12 Open Acerage Licensing Policy (OALP) and 3 DSF blocks. The acreage has a significant resource potential of upto 1 billion barrels of oil equivalent. Cairn has also conducted large-scale airborne gravity magnetic and seismic survey for exploration.
Cairn Oil & Gas entered into a Gas Sales Agreement (GSA) with AGCL that laid down the infrastructure for distribution of cleaner fuel to industry through pipelines. The company is working closely with AGCL and other infrastructure firms to make gas accessible to industries in Assam.
By the end of April, evacuation of gas in Hazarigaon is expected to ramp up as tea industry demand increases.
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