“We are very pleased to get PSC extension for 2030, but we have other opportunities to develop there. So we need to think about a further extension so we can exploit things fully. Otherwise we can’t make it work,” said Walker. He added that though the company will invest now, most of the recovery will happen post 2030. Thus the PSC needs extension.
“We are asking if the PSC can be extended till the life of the field as it happens globally,” Walker added.
Last October Cairn signed a ten year production sharing contract (PSC) for its Rajasthan block, until May 2030, with the Ministry of Petroleum & Natural Gas (MoPNG).
This approval was long awaited by the company which had been seeking a PSC extension and had moved court after its request to the government in 2009 to extend the PSC did not elicit any response. The government had been extending the PSC from time to time for brief periods since May 2020.
This extension, the company had said in October, paves way for investment of as much as $5 billion over the next three years as it plans to expand oil production to almost 500,000 barrels a day.
Home to prolific fields, Cairn has earmarked extensive investment in technologies to enhance recovery. The field also carries potential for new explorations and is also home to unconventional shale exploration. The block, with 38 discoveries, till date has total in place hydrocarbons of 5.9 billion barrels of oil equivalent (bboe). The block has cumulatively produced more than 700 million barrels of oil equivalent (mmboe) in the last decade.
Cairn has tied up with Halliburton and Baker Hughes to support its plans to enhance production.
