In an interview with ETEnergyWorld, Sudhir Mathur, Chief Executive Officer (CEO) at Vedanta Cairn Oil and Gas discusses the company’s focus in 2018 and shares his thoughts and concerns over Good Service Tax (GST) and Enhanced Oil Recover (EOR).
What will be the key business focus areas for Cairn in 2018?
Cairn has commenced the capex cycle to reach its vision of contributing to 50 per cent of India’s crude oil production. The Rajasthan block provides us with a unique proposition of singular access to the full Barmer basin. In the block, we have rich set of options ranging from enhanced oil recovery, Tight Oil, Tight Gas and exploration prospects. In order to monetize these, we have worked on project definition, value engineering, contracting strategy and reservoir quality to enable us to generate returns in excess of 20% at crude oil price of USD 40 per barrel. We have already announced investment of over USD 1 billion dollar to monetize 200 million barrels of reserves.
A fundamental shift in our execution strategy was needed to ensure that we deliver these projects in time and within budget. We have devised an integrated project development strategy with in-built risk and reward mechanism. Our partners in executing the development projects are major global oil and gas service providers. We have already awarded the key projects. Read More…