Cairn currently owns 7,650km² of acreage in Assam Arakan Basin. Credit: Cairn Oil & Gas.

India’s oil and gas exploration and production company Cairn Oil & Gas has started test production from the Hazarigaon field in Assam, India.

The Hazarigaon field was awarded to Cairn, a unit of Vedanta, in a discovered small field (DSF)-II bid round.

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The gas produced from the field is supplied through a main trunk pipeline and a gas cascading system to Assam Gas Company Limited (AGCL) as part of gas sales agreement (GSA).

As per the GSA, Cairn will sell 3.5 million cubic feet per day of gas from the Hazarigaon field to AGCL.

The field’s gas will be used by industries including tea growers, Cairn Oil & Gas said.

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In a press statement, the company said: “Additionally, the gas cascading system will enable gas from Hazarigaon to be a prime contributor in fuelling 100 CNG [compressed natural gas] buses that will be plying in Guwahati as part of the clean energy initiative of Government of Assam.”

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Cairn Oil & Gas CEO Nick Walker 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. Our partnership with the Government of Assam will not only drive the state’s clean energy transition but also contribute to its overall economic development.”

Walker said that Assam, which has a significant potential for unlocking hydrocarbon reserves, could support India’s aim to be self-reliant in oil and gas with government support, infrastructure and fast-tracked approvals.

In the next two years, Cairn is planning to drill five to ten high impact exploration wells across the Golaghat, Jorhat and Tinsukia districts of Assam.

The company currently owns 7,650km2 of acreage in the Assam Arakan Basin.

As per estimates, the acreage holds resource potential of up to one billion barrels of oil equivalent.