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Cairn Oil & Gas close to awarding 41 blocks won under OALP-I

Cairn is planning to spend around Rs 3,480 crores ($500 million) to carry out the exploration work for the 41 blocks
New Delhi: Cairn oil and gas, a subsidiary of Vedanta Limited, is at an advanced stage of awarding project management service contract for all the 41 blocks that were awarded to the company under the Open Acreage Licensing Policy (OALP), the firm’s CEO Ajay Kumar Dixit said. The company had secured the blocks in the first round of OALP auction.

Cairn plans to spend around Rs 3,480 cr

Cairn is planning to spend around Rs 3,480 crores ($500 million) to carry out the exploration work for the 41 blocks. It has already approached the Environment Ministry for grant of environment clearances for these blocks. Including these blocks, Cairn India’s acreage has increased to 55,000 square kilometre from 5,000 square kilometre.

Blocks elicit global interest

Dixit said that over 10 global exploration and production servicing firms had shown interest for end-to-end integrated project management. He added that the company expects to award 75 percent of contracts within the next six weeks.

The backdrop

Cairn Oil and Gas has got a total of 53 blocks under OALP-I and OALP-II and the second round of Discovered Small Field.