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Cairn India ranked as India’s Fastest Growing Company in middleweight category

Cairn India has been ranked as India’s fastest growing company in Businessworld’s Middleweight category (revenues in the range of Rs 5,000 crore to Rs 9,999 crore) for FY2014. The Company was recognised for its consistent growth and strong financial and operational performance despite a supressed economic environment.

Cairn India is among the top 20 global independent exploration and production companies in the world, with a market capitalisation of over $10 billion. The Company was also acknowledged as the fastest growing oil and gas explorer globally over the past two years. The company has achieved this feat on the back of a mega oil discovery at its Rajasthan oilfield, located near Barmer. The Cairn India management’s belief in its abilities led it to persist with a field in which global major Shell had failed to find oil in the 1990s. As result of its cutting-edge technology and the perseverance of its talented team, Cairn India discovered India’s largest onland oilfield in 2004. The Company named it Mangala, the auspicious.

In the past two years, the company has brought four fields into production and there has been a 300 per cent increase in its crude output over four years. As a result of its operations, it helped the nation reduce its crude oil imports by Rs 38,500 crore in FY2013, thus saving precious forex reserves.

At the moment, the company accounts for 30 per cent of India’s total crude oil production. It has made 40 discoveries so far with 1.3 billion barrels of oil equivalent (BoE) of gross proved and probable reserves and resources.

At a time when other oil companies in India are struggling to meet production targets from oil and gas blocks, Cairn India has achieved 100 per cent reserve replacement ratio — which increases the life of oilfields. “Reservoir management is key to sustained production in the oil and gas business. We have tied up with the University of Texas to develop technology to increase the life of our oilfields,” informs Mathur.

An example of Cairn’s use of technology to increase output from its oilfields is its Ravva block, located in Andhra Pradesh. The block currently produces 29,151 BoE per day. So far, the company has extracted around 250 million barrels of oil from the field, more than double the field’s initial reserve estimates of 100 million barrels of oil.

Cairn India’s portfolio has nine blocks — one in Rajasthan, two on the west coast, four on the east coast and one each in Sri Lanka and South Africa. The company has three producing assets: Rajasthan and Cambay in the west and Ravva in the east. The company has invested over $4.5 billion as capital expenditure. “In three years, we aim to produce 300,000 BoE per day from our Rajasthan field,” says Mathur.

Cairn India has drilled over 100 exploration and appraisal wells in its Rajasthan oilfield, and the number of wells will be increased to 450 over the next three years.

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