Cairn Oil & Gas, a subsidiary of Vedanta Group, has received a No Objection Certificate (NOC) from the Government of Andhra Pradesh to drill 20 onshore wells in the Krishna district. This approval is a key step in the company's broader plan to invest up to $5 billion in Indian exploration and development projects over the next three years, aiming to increase domestic hydrocarbon production and reduce the country's import dependency.

Approval Details and Conditions

The NOC was granted following Cairn's application to drill at 35 locations within a block spanning multiple villages. The approval is specifically for 20 wells and is subject to strict conditions. A primary condition is the prohibition on drawing water from the Bandar Canal, a key irrigation channel which the proposed block intersects. The state government emphasized that the NOC is temporary and issued solely from an irrigation perspective. Cairn must also secure all other necessary permissions from relevant departments before commencing operations, with specific directives given to irrigation and district authorities.

Broader Exploration Campaign

This drilling initiative in Andhra Pradesh is part of a large-scale exploration campaign launched by Cairn. To support this ambitious program, the company has begun a bidding process to charter up to 12 rigs—10 onshore and 2 offshore—for periods of two to three years. The campaign targets multiple regions, including onshore areas in Rajasthan and North East India, as well as promising shallow-water assets off India's west coast.