Cairn Oil & Gas, a unit of Vedanta Ltd, on Friday, said it has commenced test production from its Hazarigaon field in Assam that it had won in a discovered small field (DSF) bid round.

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"The gas produced by Cairn Oil & Gas is evacuated through a main trunk pipeline, and a gas cascading system to AGCL," the firm said in a statement. "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 fueling 100 CNG buses that will be plying in Guwahati as part of the clean energy initiative of the government of Assam.

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Commenting on the new production asset, Nick Walker, CEO of Cairn Oil & Gas, said, "We are delighted to become the first company to commence operations from a DSF block in the North-East region.

The 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."

Assam, he said, 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.

The company plans to drill 5 to 10 exploration wells in the next two years across the Golaghat, Jorhat, and Tinsukia districts of Assam.

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Cairn holds 7650 square kilometres of acreage in Assam-Arakan Basin with 12 Open Acreage Licensing Policy (OALP) and 3 Discovered Small Fields (DSF) blocks. "The acreage has a significant resource potential of up to 1 billion barrels of oil equivalent," the statement said.

Cairn has also conducted large-scale airborne gravity magnetic and seismic surveys for exploration.

Cairn Oil & Gas entered into a gas sales agreement (GSA) with AGCL that laid down the infrastructure for the distribution of cleaner fuel to the industry through pipelines. The company is working closely with AGCL and other infrastructure companies to make gas accessible to industries in Assam.

First Published:Apr 21, 2023 7:18 PM IST