Cairn India, a subsidiary of Vedanta Ltd, plans to start drilling works at 64 exploratory and appraisal wells in the KG Basin by May 2018, said acting CEO Sudhir Mathur at a conference call on Thursday after announcing the second quarter results of Vedanta. In January this year, a committee under the Ministry of Environment, Forests and Climate Change gave permission to the company to go ahead with the activity in the KG-OSN-2009/3 block in Prakasam and Guntur districts of Andhra Pradesh. Cairn India was awarded the block on June 30, 2010 under the New Exploration Licensing Policy-VIII round for exploration of hydrocarbons and production. The company is expecting its oil and gas production during FY18 to remain flat compared with FY17. However, production will increase in coming quarters as various projects are taking shape.
The Mangala field, one of the most prolific ones in the portfolio of the private explorer, is expected see higher production. Mathur said Cairn is closely working with the government to secure extension of the production-sharing contract for its Barmer field in Rajasthan which is due to expire in May 2020. The application for the same will have to made by May 2018. The Cabinet in March had approved extension of oil and gas contracts for explorers with a 10 percentage points increase in government’s share of profit, which for Cairn is 40% as of now.