IEW 2026: India's Cairn looks to boost output from Rajasthan fields, boost offshore exploration

India's Cairn Oil and Gas is looking to boost production from its mature fields in Rajasthan using advanced recovery methods, while expanding offshore exploration along both the eastern and western coasts of India, its spokesperson told Platts, part of S&P Global Energy, on the sidelines of India Energy Week in Goa.

The company, part of the Vedanta Group, has set aside $4 billion for capital investments across various assets, while increasingly using AI-driven reservoir modeling, real-time production optimization, digital subsurface workflows and low-cost drilling innovations to shorten cycle times and enhance capital efficiency.

"In Rajasthan, it is leveraging advanced recovery techniques, such as ASP (alkaline-surfactant-polymer) flooding. The program is now being expanded across three major fields in Mangala, Bhagyam and Aishwariya," the spokesperson said. "Cairn is developing deep gas and tight oil potential to increase production from the fields."

According to S&P Global Energy, the Rajasthan assets are the company's main cash cow and position it to remain highly liquid-weighted compared with the general E&P industry's shift toward gas-weighted assets.

Deepwater mission

As part of the National Deepwater Exploration Mission announced by Prime Minister Narendra Modi in August, many upstream producers are evaluating global upstream success stories and conducting basinal analyses to identify commonalities, aiming to target deepwater and ultra-deepwater exploration acreages, according to delegates from the upstream sector who attended IEW.

"Offshore exploration and development across eastern and western coasts will form a key pillar in line with the National Deepwater Mission. Cairn has also kick-started offshore exploration in the KG Basin through 3D controlled source electromagnetic surveys on the eastern coast, improving subsurface understanding and de-risking exploration," the company said.

Cairn's annual average gross operated oil and gas production has hovered above 103,000 barrels of oil equivalent/day in recent years, with the Rajasthan block contributing the bulk of the output. The company has set a target to achieve 300,000 boe/d of production in the near term and increase it to 500,000 boe/d over the longer term, according to company officials. Cairn's portfolio includes interests in 44 blocks spread over more than 47,000 square kilometers, the spokesperson said.

Cairn said it had recently notified the government about the presence of gas in its appraisal well Ambe-2A. To accelerate development, it has installed a Sub-Sea Template (SST) off the western coast.

"The Northeast region also has vast potential oil and gas reserves for exploration and development in the region. The vision is to make it a dominant hydrocarbons hub," Cairn said.

"Technology will remain central to Cairn's strategy. Technology-led interventions, including advanced seismic imaging, digital subsurface modelling and next-generation enhanced oil recovery, can materially enhance recovery from mature basins, such as Rajasthan, Mumbai Offshore and Assam," the company added.

Policy reforms

Cairn said that recent policy reforms have simplified the licensing process, boosted time-bound approvals and shifted the sector to a revenue-sharing regime -- changes that have improved investor sentiment.

The opening of new sedimentary basins for exploration and the government's push for investor-friendly policies -- such as the Open Acreage Licensing Policy, the Oilfields (Regulation and Development) Act and the Petroleum and Natural Gas Rules for 2025 -- are laying the groundwork for growth, it added.

"Amendments to the ORDA bill and the new PNG rules can further help reduce execution risk, aligning upstream growth with India's climate commitments rather than contradicting them," Cairn said.

The company added that India's domestic upstream production remains structurally below demand, underscoring the strategic imperative to reduce supply shocks and price volatility.

"Aligning the taxation structure as per global benchmarks will incentivize investments in the Indian upstream structure. Streamlining environmental clearances, field development approvals and infrastructure permissions can significantly reduce time-to-first oil from a global investor's perspective. Resource sharing among operators will expand open access to geological datasets within companies, improving bid quality for upcoming OALP rounds," Cairn said.

Underinvestment in conventional oil and gas resources can create supply gaps, higher prices and increased import dependence -- risks India cannot afford given its reliance on imports. As a result, investors continue to back upstream projects with strong geology, existing infrastructure and emissions mitigation pathways, the company added.

"The pace at which India can enhance upstream exploration, deploy advanced recovery technologies and accelerate development timelines will be decisive in shaping energy security outcomes. Domestic E&P growth will not only reduce import dependence but also improve trade balances and macroeconomic stability," Cairn said.