Radical shake-up of Cairn business operations
Cairn India is carrying out a radical reorganisation of its business operations to improve efficiency and meet its target to raise production from 200,000 b/d to 300,000 b/d by 2019 and eventually 500,000 b/d.
In a two-page internal memo, seen by PETROWATCH, Cairn chief executive Sudhir Mathur on February 9 details plans to split up the company's ExCo (typically translated as 'Executive Committee') and redesign the organisation into six Strategic Business Units (SBUs) to drive through its "next phase of growth." Two of these SBUs are for production: one for Rajasthan oil production, the other for Rajasthan gas production. Three are for Rajasthan development at the Mangala, Bhagyam and Aishwariya (MBA) fields; one for 'tight gas' facilities and one for tight oil and tight gas development.
Cairn will also have an offshore SBU to oversee the western offshore CB-OS/2 block and the eastern offshore Ravva oil and gasfield, KG basin block KG-OSN-2009/3 and Palar basin block PR-OSN-2004/1. Mathur explains the restructuring is because "with our shared vision of contributing 50% of India's crude oil and gas production, Cairn is at an inflection point in its growth journey with five fast-track projects and investments of over $2bn in the near future." Cairn also plans to begin exploration drilling at KG basin blocks KG-ONN-2003/1 and KG-OSN-2009/3 in 2018 and has sent in EoIs for 15 exploration blocks under the government's Open Acreage Licensing Policy (OALP) with its April 3 bid deadline.
