Focus: Corporate social Focus:responsibility csr

Sand to Oil How the discovery of crude oil transformed the socio-economic landscape of Barmer district in Rajasthan

1 Cairn Oil & Gas Focus: csr

Contents

Cover story Special report Special report Leadership spotlight 04 Decade of oil, desert of dreams 14 Building entrepreneurs 18 Highest safety standards 21 business operations and Csr An overview of Cairn Oil & Gas, Vedanta Ltd., Cairn Oil & Gas’s presence in Barmer has led to a ensure optimal production Business operations and Corporate Social developments in the 2018-19 fiscal, highlighting spurt in local business paving the way for prosperity The oil and gas firm views safety as a lot more than Responsibility (CSR) have played an equal part in how Barmer has become Rajasthan’s richest and development in the region just mitigating bodily harm transforming Barmer - Harmeet Sehra, Head, CSR district sheds light on how community initiatives helped strengthen the company’s support base Leader Speak The breakout zone The buzz The big story 10 Swiftly moving towards meeting 16 Leading the way with Tech 20 PartnerSpeak 23 Barmer beyond oil & gas India’s energy needs’ Use of technology is the mainstay of all Cairn Partnerships are a key focus for Cairn resulting Corporate Social Responsibility (CSR) has been part Ajay Dixit, CEO, Cairn Oil & Gas, on how the operations. The company has adopted the latest in robust industrial development, bringing more of all Cairn Oil & Gas’s operations for decades and has company aims to contribute 50% of India’s tech to improve efficiency and safety business to Barmer led to some dramatic changes in the society of this domestic production in the coming decade desert district 2 3 Cairn Oil & Gas Focus: csr

ompleting 10 long years of production 2019 alone. the company but rather the macro-economic at the Mangala oil field in Barmer The company’s presence in Rajasthan indices of the district itself. Ten years ago, Decade of Oil, district of Rajasthan, Cairn Oil & Gas, has had a two-pronged impact on the region. when the oil and gas company began work, CVedanta Ltd., has led to a complete “We have had the advantage of coming to a Barmer was considered a low development face-lift of the local economy and has had a far district which was listed among the lowest potential district and industry was not expected reaching impact at the national level as well. development potential districts of the country to take root. It was among the poorest districts The ‘first oil’ at Mangala field was discovered as well as the state. By virtue of being a large of Rajasthan for decades. But today, it has gone Desert of Dreams on 29 August 2009 and since then, the industry in the region and through partners like on to become the richest in the state. The per company’s investments have changed Barmer capita GDP of the region grew by almost 650% in more ways than one. This desert district between 2009 and 2019. was, until very recently, considered among the However, the going has been tough, as can most backward in the country but has now The discovery of be seen in the company’s long journey over the risen to become one of the highest per capita past two and a half decades (see graphic 1). income generating districts of Rajasthan. Mangala field has Oil was struck at Mangala on the 14th attempt. “The discovery of Mangala field has helped helped bring in change Cairn Oil & Gas witnessed a slight slump in change the socio-economic landscape of early 2019 after a spate of resignations at the Barmer... the field is promising and with our to the socio-economic top management level and a fall in the stock planned investments, we aim to increase prices – up to 4% earlier this fiscal – that production further by realising its full landscape of Barmer... followed. However, the firm seems infallible potential,” said Ajay Kumar Dixit, CEO, Cairn and keeps bouncing back from every setback. Oil & Gas, at recent celebrations held at the Vedanta Ltd. announced in September 2019 Mangala plant, which marked a decade of that it had reduced its net debt by Rs 8,322 crude production here. At present, the fields Baker Hughes, Halliburton, and Schlumberger, crore as of Q2 (FY 2020) and PAT was higher in Barmer account for close to 80% of the there is now a large workforce on the by 61% y-o-y. And at the oil and gas arm of company’s total production. ground,” said Madhavi Jha, head of Corporate the energy conglomerate, 166 wells have been Cairn Oil & Gas is India’s largest private oil Communications at Cairn Oil & Gas. drilled while 63 wells have been hooked up this and gas exploration and production company Jha added that Cairn Oil & Gas is a case fiscal. Early gas production facility has also and has contributed 414 million barrels of study where one can witness the direct and been ramped up to over 50 mmscfd. crude from the Barmer fields to India as of tangible social impact that an industry has in The company is systematically moving August 2019. It has cumulatively produced a region. “This impact is separate from the towards addressing India’s energy needs. It 532 million barrels of crude across the country, impact that such an industry’s corporate social is unfortunate that while India stands third in which constitutes almost 25% of India’s total responsibility (CSR) programmes can have on terms of consumption of oil and gas (behind domestic crude production. The company the ground,” she said. USA and China), it barely produces 19% of its has paid a royalty of Rs 33,500 crore to the The urbanisation and economic boom that requirements domestically. Over 80% of India’s Government of Rajasthan to date and Rs has followed Cairn Oil & Gas to Barmer is needs are met through imports, a burden on 16,511 crore to the in FY best illustrated not by any internal indices of the national coffers, which will hopefully reduce

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with more companies joining the aggressive is spread over 3,000 square kilometres. The efforts of discovery and recovery as Cairn Oil & investment is aimed at enhancing production Gas is doing. and expanding exploration. It will mainly focus “With our expanded Already in FY 19, the top brass is confident on ASP technology, which is expected to ramp that production and recovery of crude will up output from the oil wells by almost one lakh portfolio in Rajasthan witness a sharp rise due to the investments barrels per day over and above the current made in the past. As of March 2019, a average output of 1.4 lakh barrels per day. (See as well as other parts seven-year-long research and pilot study on In-Conversation with CEO). Alkaline Surfactant Polymer (ASP) flooding Mangala, Bhagyam, and Aishwariya oil of the country, we aim was concluded, which is expected to raise the fields are the three major discoveries in the to develop many more recovery ratio of crude to above 50% from the Rajasthan block, and together they have gross current 36%. Cairn Oil & Gas has dubbed the hydrocarbons in place of about 2.2 billion “Mangalas” and put ASP project at Barmer as the world’s biggest barrels of oil equivalent, according to the ASP project. company’s internal assessments. India on the path to The company has decided to invest over Now, towards the end of FY 2019, the $4 billion in the next five years across the company is on the path to realising its dream energy security,” country and around $1.1 billion in the oil fields of meeting 50% of India’s domestic crude of Rajasthan’s Barmer district spread over needs. Ajay Kumar Dixit, who took over earlier the coming 18 months. The Rajasthan block this year as Chief Executive Officer, Cairn Oil

a) Completed 10 years of crude oil production at the Mangala plant in a) First gas sale from Rajasthan Barmer b) Cairn acquires blocks in South Africa b) Operating 25% of India’s total a) First oil production inaugurated c) Tagged ‘Fastest growing company’ in the domestic crude production by the then Prime Minister of India – CB/OS-2 – First success of what is now world for two consecutive years (2012 and c) Rs 16,511 crore contributed to GOI Manmohan Singh. known as Lakshmi field, by discovery of gas 2013) as per Platt’s top 250 rankings a) Completed in FY 19 b) Commenced 3D seismic survey in in Babaguru and oil in Tarkeshwar levels 15 years of CB/ d) Reduced India’s crude imports by Rs the Mannar basin of Sri Lanka OS-2 operations 31,700 crores in FY 19 PSC signed between GOI and a Introduction of the world’s longest a) e) Total 58 blocks with total acreage of 2000 2009 2013 2017 consortium of companies – ONGC, continuously heated pipeline, acquired 58.5% stake in 65,000 sq kilometres Cairn Inida Videocon , Ravva Oil and spanning a distance of 670 kilometres 300 million barrels of b) Saraswati field Command Petroleum from Rajasthan to Cambay port. production from Rajasthan commenced production c) CB/OS-2 crossed 10 1994 2007 million barrels of crude 2011 2015 2019 oil production

2004 2010 2014 2018

Discovery of Mangala First gas was supplied to support the a) 200 million barrels of a) Awarded 41 new exploration blocks commissioning activities of above the production from Rajasthan under GOI’s maiden open acreage ground installations of the crude oil b) 129 new oil wells brought into licensing policy (OALP) 1998 2008 pipeline 2012 production in FY14 2016 b) Achieved cumulative oil production c) Started coastal evacuation of 200,000 bbl per day in FY17-18 a) Ravva achieved 25 million bbls of a) Construction of the Mangala a) January – Bhagyam field commenced from CB/OS-2 Executed the world’s c) Rajasthan block gets a 10 year PSC cumulative oil production transporting and processing plant production and marginal oil field d) Net capital expenditure plan to largest polymer flood via extension b) PSC signed between GOI and CB/OS-2 (MTTP) started. Raageshwari commenced production fuel growth estimated to be US$ 3 the Mangala EOR d) Over a million lives touched Joint Venture (JV) comprising Cairn Energy b) Entry into Sri Lanka. b) April – 150,000 bopd production billion, over next three years through CSR activities across assets India Pvt Ltd, ONGC and Tata Petrodyne Ltd from Mangala enables Rajasthan block to produce 175,000 bopd c) 75,000 lives touched through CSR projects across assets

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& Gas, , said, “The increased Resources Ltd. on enhancing the lives of local communities. investment announced by our chairman will The company’s aggressive investment in In addition to the direct impact that the ensure we meet this target soon.” technology is leading to a change in the global business has had on the region, Cairn Oil & perception of India’s oil and gas sector. Cairn Gas’s community interventions in the area have LOOKING AHEAD Oil & Gas boasts of having built the world’s significantly improved the standard of living for In 2018, Cairn Oil & Gas won 41 blocks out longest continuously heated and insulated local communities. From access to healthcare of 55 auctioned by the Government of India pipeline. And working on deploying the world’s and drinking water, sanitation, children’s under its maiden open acreage licensing policy largest ASP project at the Mangala unit. ASP nutrition and education, the company’s social (OALP), taking the company’s footprint to 58 flooding is a chemical enhanced oil recovery interventions have impacted all aspects of the blocks across the country (see map). Cairn Oil method in which alkali, surfactant, and polymer local community. & Gas is part of Vedanta Resources Limited, are injected into the ground to increase the the world’s sixth-largest diversified natural extraction ratio. resources conglomerate with interest in oil “Temperamentally, the company takes As per Estimates of and gas, zinc-lead-silver, copper, iron ore, calculated risks often and makes aggressive District Domestic Product aluminium and commercial power. investments in technology to ensure optimal The company was also awarded a 10-year production and environmental sustainability,” of Rajasthan 2011-12 to Production Sharing Contract (PSC) extension said Anand Laxshmivarahan R, Chief Digital for the Barmer oil fields. The Government of Officer at Cairn Oil & Gas. He and his team, 2016-17 (AE), Directorate India, acting through the Directorate General over the past 18 months, have brought of Economics & Statistics, of Hydrocarbons, Ministry of Petroleum and about changes in extraction, production, and Department of Planning, Natural Gas, granted its approval for a 10-year monitoring processes of the company which provide apriori information to optimise areas for poverty, and unemployment. It was often called production, power fluid network systems extension of the PSC for the Rajasthan block in save man hours and also allow for improved exploration focus. This will also enable Vedanta ‘Kala-pani’ – a reference to the infamous jails and digital oil fields (DOF) (see the article on Rajasthan, Barmer October 2018. The tenure of this PSC was due management of assets through digitalisation. to optimise time and cost intensive seismic of the British government located on Andaman Technology for Efficiency). to expire on 14 May 2020 and now the tenure With a shared vision of contributing 50% data acquisition to fast track drilling and early and Nicobar islands – and considered a Discovery of Mangala a decade back and contributed 7.11% to block has been extended for an additional 10 of India’s crude oil production, Cairn Oil & monetisation. punishment posting for any official, recall subsequent production of crude oil from the Rajasthan’s GDP, second years beginning 15 May 2020. Gas has embarked on an ambitious phase Vedanta has successfully completed the local authorities like the current Chief Medical region has transformed Barmer from being In its operations over 20 years, Cairn Oil of growth. Assam-Arakan Basin is critical largest onshore FTG survey program in India, Officer, Dr. Kamlesh Choudhary, at the Barmer one of the most backward to among the most only to Jaipur and the & Gas has opened four producing assets and for Vedanta’s growth strategy to meet its covering an area of ~9800 sq. kms within a district hospital. prosperous districts in the country over the last district’s per capita made numerous discoveries including-38 production vision. Vedanta has been fast- time frame of seven and a half weeks, which Not so long, only camel carts and auto- decade. discoveries in Rajasthan alone. As of 2019, the tracking various elements to monetise early is an achievement considering the limited rickshaws plodded through the dusty roads of As per Estimates of the District Domestic income has become company is producing from Rajasthan, Cambay, production of oil and gas from its Open Acreage clear weather window in the region and other Barmer and now swank buses, SUVs and luxury Product of Rajasthan 2011-12 to 2016-17 higher than India’s and Ravva, and the Krishna-Godavari Basin and Licensing Policy (OALP) blocks. The unique complexities involved in conducting this cars have taken over. Before the discovery of oil (AE), Directorate of Economics & Statistics, under the process of exploring the new blocks it terrain and weather in North Eastern India survey. Satellite-based Sub-Terrain Prospecting at Mangala, only two hotels existed in the entire Department of Planning, Rajasthan, Barmer Rajasthan’s per capita had acquired in FY18. requires innovative technologies to assess (STeP®), which includes eight remote-sensing district and even they struggled to fill their contributed 7.11% to Rajasthan’s GDP, second “With our expanded portfolio in Rajasthan hydrocarbons potential in large areas under and computational technologies has been rooms. And now, with over 18 hotels, all built in only to Jaipur, and the district’s per capita income. as well as other parts of the country, we aim Vedanta’s OALP acreage. utilised within six-month time frame covering the last decade, often visitors are turned away income has become higher than India’s and to develop many more ‘Mangalas’ and put Full Tensor Gravity Gradiometry™ (FTG) an area of 3,650 sq.km. This is a first of its for lack of vacancy. Most hotels rent their entire Rajasthan’s average per capita income. India on the path to energy security,” said airborne survey, and a suite of satellite-based kind application in oil and gas exploration in capacity to oil and oil support companies. Cairn Oil & Gas’s presence in the region has To have a long-lasting positive impact in Anil Agarwal, Executive Chairman, Vedanta geoscience technologies have been utilised to India. This data along with FTG and optimised Following Cairn Oil & Gas’s discovery of oil in not only boosted the national economy – in the region, the company has been running seismic data will be used to identify and the region, the district has become a hotbed of terms of reducing the import burden – but programmes on livelihood generation, natural prioritise the hydrocarbon prospectivity in North enterprise and job opportunities. also fostered entrepreneurs. Individuals and resource management, arid-land farming, East India. The Rajasthan block is considered India’s small businesses that sprung up to support animal husbandry and skill development. largest onshore oil find in the last 30 years the presence of Cairn Oil & Gas employees Its social programs are built on the basic CHANGING and the company has been successful in and processes are now expanding to other premise of – “if you give a hungry man a fish, maximising the potential of this block through companies and clients across the country. (see you feed him one meal... But if you teach a BARMER the use of technology, digitalisation and human the article on Building Businesses) man to fish you ensure he never goes hungry Barmer holds a special place in the company’s capital. Mangala is where Cairn Oil & Gas again”. Community engagement and social portfolio. Anil Agarwal states, “Mangala has successfully deployed enhanced oil recovery interventions by Cairn Oil & Gas have brought been a crown jewel in Cairn’s portfolio over the (EOR) using polymer flooding. It has also BUILDING about a sea change in the lives of people last decade. The field has made an enormous successfully piloted ASP EOR in the field. THE LOCAL and communities in and around Barmer. Last contribution to the Indian hydrocarbons sector Other innovations and technologies like year alone, its CSR initiatives touched the and helped in reducing the import burden on horizontal wells, rapid rigs, and the single COMMUNITY lives of close to 16 lakh people, almost 70% our economy.” largest installation of jet pumps in the Governance and sustainable development are of the population across the firm’s locations, Until a few years ago, Barmer was world have been instrumental in optimising at the core of the firm’s strategy, with a strong significantly in Rajasthan. (see the article on synonymous with heat, dust, water scarcity, production, as have in-house integration of focus on health, safety, and environment, and CSR)

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jay Kumar Dixit was appointed Chief Executive Officer (CEO) at Cairn Oil & Gas earlier in 2019, prior to which he was working as CEO at AVedanta’s Aluminium and Power company from 2015 to 2019. Bringing with him over 39 years of expertise and experience in the energy sector, Dixit believes that apart from increased production in oil and gas, Barmer holds key elements to meet India’s energy demand, and that with some support from the government the company may soon be able to begin extraction of unconventional hydrocarbons from the desert. Dixit is an electrical engineer by qualification. Before joining the Vedanta group, he was the CEO at Siemens Energy for South Asia. He joined Siemens as a Project Engineer in 1980 and worked in roles of increasing responsibility, before taking over as the CEO for their Energy business in the region.

suggests that in Rajasthan unconventional the central government and are attempting to hydrocarbons are also present. These would address all the concerns involved. We have include the high energy shale gas, which can approached them with the possible potential help address India’s ever growing needs. in the region and stated our fear of the current In conversation with We feel there is more potential in these regulations governing the sector. discoveries. We have not begun exploration for While the permission to look for Ajay Kumar Dixit, CEO, Cairn Oil & Gas. what can be done from these resources by a unconventional hydrocarbons like shale gas unconventional hydrocarbons like shale gas responsible business like Vedanta Group. because the current regulatory framework is exists in the blocks allotted to us, the costs Besides this, we feel that more can be done not financially viable for companies to even involved are going to be significantly high. in Rajasthan. There are areas neighbouring our explore. We have taken up this matter with And if we have to pay back the royalty, cess ‘Swiftly moving towards existing operations where we may find more oil and the profit petroleum to the government, and other hydrocarbons. the net cost will be far higher than what we Q. The recent announcement “With our expanded can afford to undertake at present. So we meeting India’s energy needs’ of the increased investment by have approached the ministry to reconsider Vedanta, what would it mean for portfolio in Rajasthan these levies – requesting them to view the Q. Where does Cairn Oil & Gas this regard. We are one of the biggest private meeting 50% of the requirement over the next Cairn Oil & Gas? cost incurred on the exploration etc as the fit into the larger vision of players in this sector. Take for instance Zinc, few years. A. Almost 80% of this investment is aimed at as well as other parts cost of import substitution – and reconsider Vedanta Resources Ltd? Silver, Aluminium and even Iron ore – we are Cairn Oil & Gas is essential to realising the Rajasthan region. It is aimed at enhancing of the country, we aim incentives that may be put into place to A. The Group’s vision is rather simple as a the largest producers of these metals. Vedanta’s larger vision. In this regard, I often oil and gas production. This investment is encourage this nascent industry. natural resource conglomerate – our focus is As for oil and gas, Cairn Oil & Gas is one emphasise a statement of our group Chairman looking to increase both production and to develop many more However, here I would like to point out that to reduce India’s import dependency on natural of the key private players in crude production. – the vision for Vedanta is all about making exploration. the government and we have the same vision resources. The idea is to cut down the import We contribute 25% of the total crude produced India self sufficient in natural resources. “Mangalas” and put – we are on the same page about the need to bill and make the country self sufficient. domestically. It is common knowledge that And in all the sectors under Vedanta, even Q. What are the other increase domestic hydrocarbon production. Recently, the Central Government the Prime Minister has announced a target in sectors where they have acquired assets hydrocarbons in Rajasthan and India on the path to This is best illustrated by the fact mentioned announced it would like to increase revenue of reducing crude imports by almost 10% in from other entities, they have been efficient. has exploration begun for them? earlier as well that the Prime Minister has set from mining – raise the proportion of current the coming years. At the same time, we as a They have multiplied the earnings from even A. Data and information available to us energy security” the target of reducing crude imports by 10%. 1.5% or 1.6% to almost 4.5%. And we as a company have set a goal of moving from 25% acquired assets. The success stories of from third party surveys and our internal Plus, the new method of tendering via Open group feel our companies have much to offer in of the total domestically produced crude to or Balco are a testimony of assessments regarding the regional geology Lease Acreage Policy (OLAP) is an encouraging

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Since 1990s numerous players have made efforts to discover oil sign because the auctioning process is now operations... Could you beginning operations we looked to extending support to education, hospitals or water or there are only a limited number of people that moving more favourably in the direction of elaborate on this? this project to the local communities and we in the region. First even daily needs and vocational training. we can directly or indirectly employee in our finding more oil and producing it thereafter. A. Interestingly, Barmer was well known to did so by building Water ATMs. came ONGC then came We have managed to raise the per capita operations on the ground – especially because me as the place where outlaws can be sent. Similarly, the trucking businesses, welding income of the region. This is not the result of this is a highly automated plant. And this has Q. What makes Cairn Oil & Gas Until very recently the region was known and construction processes, which Cairn Oil Shell (UK) and so on just our business operations which have given been a key driving factor – finally, because different from its competitors? as kala pani – due to its isolation, harsh & Gas sought first, have now become part of rise to numerous auxiliary/support businesses instead of giving someone money it is better A. Apart from the manner in which we conduct natural environment, unemployment and lack the local economy. Another instance of how and so forth. However, but also the result of training and skilling the to teach them how to earn money, this is what business responsibly and engage with the local of development. The situation was rather demand stemming from the firm’s operations locals which has led to income generation in makes the real difference on the ground. community, I feel it is the application of digital abysmal on the ground with hardly any activity helped the local economy grow is the hotel in the 1990s, as luck the region. technologies. over there. I knew of Barmer long before I business, which has blossomed soon after the would have it, none of Over a period of time Barmer has become Q. What is next for Cairn Oil & The current focus of our digitalisation is on became the CEO of Cairn Oil & Gas. discovery of oil in the region. one of the highest per capita income Gas? real time monitoring and ensuring safety, here Barmer holds a high place in our company Now Barmer is at a stage of continuous these explorations were generating districts in the state and country. A. That is a tricky question as there isn’t it is not just safety of human life at the time portfolio for two reasons – one is the oil and development where local skills are getting Our journey there continues. one answer – in every field there is scope to of some incident, it is also the safety of our gas operations that are doing well in the region developed for local use and this has led to a successful. More than improve and do better. However, there are two exploration and extraction processes. and the other reason is what we have been continuous transformation of what we were Q. What do you feel Cairn Oil & aspects of our presence in Barmer, which I Another area is in terms of finding oil able to do for the region. doing as a business over there by engaging 13 wells were drilled Gas has done that has had the consider as top-of-the-tier – one, increased exploration data through real time monitoring. Since the 1990s, numerous players have more locally. but oil was not found maximum impact in uplifting recovery of oil where we hope to reach 50% The digital centre at the Gurgaon office can made efforts to discover oil in the region. First the district out of poverty? soon. The other is gas discovery which we control the entire drilling operation in Barmer. came ONGC then came Shell (UK) and so on Q. Is there any specific successfully. A. The most impactful aspect of our operations have done. We will hopefully reach 50,000 to We can view the operations on the ground in and so forth. However, in the 1990s, as luck challenge in Barmer that Cairn in the region, which have helped it grow so 60,000 barrel equivalent, which would very three dimensional images, which help us or would have it, none of these explorations were Oil & Gas handled better much in this short time, has been that we easily be close to the second highest after give us a higher chance of success during successful. More than 13 wells were drilled than its predecessors or its and isolated earlier – an area known as have continuously engaged with the local ONGC in Rajasthan itself. exploration and extraction. but oil was not found successfully. And then competitors? kala pani. The ecosystem developed as the community. This engagement is not limited Also, with the advanced technology being We are now looking at further applications Cairn Oil & Gas took over operations, which led A. It would be unfair to draw such a business grew further. to our social intervention programs like water deployed on the ground we hope to enhance oil of digital technology to increase the efficiency to the first discovery of oil 10 years ago. comparison because as far as Barmer is It is hard to compare as there was hardly ATMs but also in terms of increasing the recovery using the alkaline surfactant polymer of the ongoing processes and also improve After that there has been no holding back. concerned – there was no business. When you anything present in the region before Cairn Oil participation of the local population in our process. From the time of when the operations the chances of success in exploration and Barmer is a changed place. talk of the Barmer story you can do so only if & Gas’s success here. operations. began we were at 15-20% recovery, which has being able to bring in higher operating time As the business grew, the migration of you look at the development of Cairn Oil & Gas In Barmer, everything moves around Cairn This has been further enhanced by us improved to around 30-40%. Now, we want to of machinery, which in turn will contribute to labour and skilled individuals moving into the in the region. The Barmer story is synonymous Oil & Gas either through direct or through through improving the skills of the locals – be reach up to 50% recovery. increased production. region not only boosted the local economy with the Cairn Oil & Gas story. indirect engagement with the industry. it light vehicle drivers, truckers or building I keenly look forward to unlocking the but also helped in meeting local needs. For What we have handled better is that while And obviously, as a responsible business, contractors. So one part has been skilling to unconventional hydrocarbon potential. And Q. Often it is stated that the example, our search for drinking water led us others were not able to discover oil – we we have attempted to address the big meet the needs of the company’s operations that can happen once you start exploration for Barmer operations are the to build treatment units not just for industrial discovered it. Other than that, we have built up question of how we can improve the living and the other was skilling for self help and the same and drill at different depths of the ‘crown-jewel’ in Vedanta’s processes but also for consumption. Soon after the ecosystem in an area which was desolate conditions of the locals – be it from our self sufficiency. Because at the end of the day desert, which we feel is possible.

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of which only 20 to 30 per cent are from the local areas. “I am hoping to increase the ratio of locally hired staff and am training more local Building youth to be able to meet the staff requirements of pleasant service and basic English-speaking skills,” he said. Training and exposure to global standards entrepreneurs of operation has also been a key focus of Cairn Oil & Gas. Rajesh Mohata, Director Procurement and Supply Chain Management at Cairn Oil & Gas’s presence in Barmer has led to a spurt in the company explained that when the company hires or outsources any service or contractual local businesses. And individuals who began with supplying work, first, the vendors are trained and told about the internal standards and processes. material and products for the oil and gas company have For instance, a number of heavy as well as expanded their businesses boosting the local economy lightweight vehicles hired on contractual basis are mandated to travel at 60 km per hour or less irrespective of the emptiness of the road. Similarly, all drivers must wear seat belts and insist that passengers – whether sitting in the front or back seat must wear seat belts. “Our training and exposure to local vendors has helped them gain contracts from the international firms,” said Mohata. He added that since Cairn Oil & Gas has always had stringent rules and processes, the vendors working for them have learnt the value of these processes and therefore have become a more attractive alternative than vendors outside compensation or philanthropic activities it has large SUVs as taxis and trucks to the company areas not just for his humility but also for his Barmer. “In the initial years we trained the Praveen Singh undertaken but also because the company has on lease. These are available to locals and business acumen. After his success with the locals in contractual work – like transportation, Proprietor-Sanchal Fort, Barmer given rise to local businesses. Individuals who tourists as well. bunkhouses for companies working in Barmer, excavation etc – so when we hired the began with providing material and services to Percolation from the top down – top being Kiri has gone on to build a complete resort with big multinational companies to do some Cairn Oil & Gas and its support companies’ Cairn Oil & Gas and other support companies container bunk houses. Industrial in look, the contractual work for us we introduced them to operations have gone on to expand their and down being the general public based resort is comfortable and offers all the modern the locals as sub-contractors and slowly the businesses far and wide. For instance, until in Barmer town and adjoining villages – is facilities. Keen to expand his business further, whole eco-system was built up,” he added. the early 2000s, Barmer had only two hotels most visible in the transport, construction Kiri believes Cairn Oil & Gas coming to Barmer The company for years now has followed in the whole district and as of 2019 there and hospitality sectors. Lalit Kiri, a trained paved the way for many like him, who had few the policy of giving preference to local vendors are more than 20. Each hotel comes with pharmacist, has made a fortune over the livelihood options. over those from outside. Local vendors are support staff and has created employment for last decade-and-half through his firm Kiri Even Praveen Singh, Sanchal Fort proprietor, given first opportunities and that has led hundreds if not thousands. and Company Logistics Private Limited by began work as a logistical support provider investments in basic support businesses like Growth of the oil business has given rise to providing portable bunkhouses for Cairn Oil & for Cairn Oil & Gas, where he would supply facilities management and transportation. many such support businesses. As Cairn Oil Gas and other support companies working on heavy machinery, catering and other services “The local vendors have become very reliable Lalit Kiri & Gas, CEO, Ajay Kumar Dixit explained, “As oil exploration and infrastructure in the region. to the company and to its support firms. He and competent service providers. And now Proprietor-Kiri and Company Logistics business grew, the migration of labour and His association with the oil and gas company said, “There was a vacuum in this town in our support companies rarely bring sub- Private Ltd, Barmer skilled individuals moving into the region not in Barmer began years before the first oil was terms of high-end resort and hospitality space contractors from outside of Barmer,” said only boosted the local economy but also helped discovered at the Mangala plant. and that is when my siblings and I decided to Mohata. Now, after years of such operations hirty-three-year-old Praveen Singh is “If I attempt to put into words the way Barmer in meeting the local needs.” According to him, As he proudly displayed his company open this hotel to cater largely to the foreign when international companies like Baker the proud proprietor of Barmer’s first was 10 years ago as compared to what you the trucking and light vehicle operations in website and videos on his smart phone, Kiri employees coming to work here and the high- Hughes LLC, Halliburton Co., and Schlumberger boutique heritage hotel – Sanchal Fort, see today, you will not be able to imagine,” Barmer have shot up multiple times in the last said that as of 2019 he is looking to diversify end customers of Barmer itself.” His hotel of Ltd come to the field, the local vendors are opened in 2014. On a busy Friday night Singh said. The complete transformation of decade. Till the early 2000s camel carts and his business investments. He has already 27 rooms witnesses over 300 room-nights per able to approach them, communicate and T share autos were the most dominant mode of started providing his services to companies year. negotiate the terms of work directly with them, as he moved from one table to the next, asking this desert district is a common strain of his guests about their day and comfort, he conversation here. transport apart from the rare state transport across the country and is looking to expand Singh presently is in the expansion phase which the company’s leadership feels has explained that to paint a picture of Barmer’s Cairn Oil & Gas’s presence here is highly corporation buses, but now there are a number his investments internationally. The lanky man and hopes to increase his capacity by 30 been enabled by them. transformation is all but an impossible task. valued by the locals not just because of the of companies providing air-conditioned buses, is well known in this town and its adjoining more rooms. He employs over 50 hotel staff,

14 15 Cairn Oil & Gas Focus: csr

Leading the Way with Tech

temperature, flow or flow of the equipment are essential for our license to operate,” he airn Oil & Gas, over the past decade, In July 2019, Cairn Oil & Gas held a special to improve the use of technology. “The way in the field. It is currently being monitored in said. has boasted of many firsts in symposium aimed at exploring ways to we look at project Nirmaan’s footprint in the real time through automated software bots One of the popular uses of technology technologically advanced processes. achieve greater collaboration and efficiency company is through seven or eight strategic Use of technology is the and has gained around 60% to 70% accuracy. related to sustainability at Cairn India has CFrom the world’s longest continuously through digitalisation in the oil and gas imperatives like improving productivity, This figure may appear unimpressive to most, been the deployment of drones to monitor heated and insulated heated pipeline, to the sector. The company signed MoUs with five efficiency and cost related aspects, enhance mainstay of all Cairn however, even the most secure and advanced the 670-kilometre-long insulated pipeline world’s largest Alkaline Surfactant Polymer start-ups, following the conference. As Anand safety, enhancing production, minimising banking firms that use automated software that starts from the Mangala plant at (ASP) project, the company is aggressively Laxshmivarahan R, Chief Digital Officer at production loss and acceleration of Oil & Gas operations, bots for fraud detection today, only have 70% Barmer in Rajasthan to Salaya oil terminal investing in technology to optimise its the firm explained, “From an organisation exploration,” said Laxshmivarahan. accuracy. near Jamnagar in Gujarat. The 24-inch production. It was also one of the first private standpoint, right from the Chairman to the One of the big success stories at Cairn Oil & with a highly automated Cairn Oil & Gas’s digitalisation drive heated pipeline meant for crude oil and gas companies in the country to adopt horizontal executive committee – digitalisation is top of Gas from the digitalisation process has been is diverse – from employee experience, transportation is mostly underground and drilling under the ground surface, which the mind. There is investment and a strong the automation of rig scheduling. The oil rigs plant the company is enhancing production to minimising mundane needs constant monitoring to avoid damage reduces the environmental impact of oil belief that we need to be a digitally and were manually scheduled for moving from repetitive tasks, algorithms and software bots by unwanted vegetation growth or unrelated exploration. While the industrial processes technologically advanced organisation.” one location to another, till very recently. The striving towards using the are being employed to increase efficiency. excavations nearby. The company contracted grow and develop with the growth in oil and As of 2019, the company is running close digital team has just completed a pilot project A key area of the digital drive also involves a third party to conduct the monitoring via gas business, the oil and gas giant has opened to 40-42 projects on digitalisation, each with showcasing how a digital tool can do the latest tech to enhance safety and sustainability. drones, which is closely observed at the head- a new chapter with rapid digitalisation of their a defined value in terms of money saved same better and quicker. The rig scheduling production. Digitalisation “Usually, when selecting a process or office, the Barmer plant and other smaller processes. or production added, except for safety and digitalisation is based on analysis of one whole activity for digitalisation we first draw up units along the length of the pipeline. This The automated plant in Rajasthan is a sustainability related projects. The digital year’s production data, when it was managed has become a key focus the value in terms of return it will give. Each close monitoring has prevented accidents or matter of great pride for the company and transformation of the company has been manually and then juxtaposed with the digital project has a dollar value and based on that leaching from the pipeline that can damage as CEO Ajay Kumar Dixit said, “We are now dubbed project Nirmaan internally, and it aims tool to show that the company could have in the recent years for the we seek out opportunities to optimise, enhance the environment. looking at further applications of digital to address optimal use of machinery, man saved close to 4,50,000 barrels of oil per year. and secure processes,” said Laxshmivaharan. The digital team at Cairn Oil & Gas is technology to achieve higher efficiency from hours, equipment, exploration and production. It can also be viewed as an additional gain oil and gas firm to ensure He added that dollar value is not calculated exploring the use of similar technology to the ongoing processes and also improving If one were to unbox the terms project Nirmaan of oil to the tune of almost two days worth of or even considered when digital processes monitor their oil fields in Barmer that are the chances of success in exploration and aims to address problems and opportunity production in the current process. optimal operations are being considered for the safety or spread far and wide. “This can help us being able to bring in higher operating time prospects that technology can help solve. The company is exploring possibilities of sustainability of the business. “We cannot put ensure safety of all employees working of machinery, which in turn will contribute to The digital team comprises of roughly 30 deploying robotic analytics to gauge potential any value on safety and sustainability because under harsh conditions in the desert,” said increased production.” people and works with various process teams failure in terms of changing pressure, as a responsible business these core values Laxshmivaharan.

16 17 Cairn Oil & Gas Focus: csr

Highest safety standards ensure optimal production ‘Built into the company DNA’, at Cairn Oil & Gas, safety goes beyond bodily harm and strives to address industrial processes as well as environmental impact. The norms of health, safety, environment and quality (HSEQ) are stringent at this organisation and have won the company numerous industry awards.

For instance, in the three years of operations rom the moment you step into any “These, and other similar regulations, have have succeeded, to a great degree in making at the Mangala oil well in Barmer, there have Cairn Oil & Gas premises, you are made been put in place to mitigate any possibility these norms a part of everyday habit with the been only two safety related incidents. These aware of the rules and regulations to of accidents,” said Shobhit Tiwari, who heads employees.” incidents were also of very low intensity as Fbe followed – be it at the processing the Health, Safety, Environment and Quality The rules and regulations for HSEQ are not they were reported to be tier-1 and tier-2 units in the field like the Mangala Processing (HSEQ) division of Cairn Oil & Gas. He added limited to the direct employees of Cairn Oil level. This is lower than the average of big Terminal at Barmer or at the swanky head that safety is not just concern for individual & Gas alone, as is evident when you meet international oil and gas firms. Similarly, over office in Gurgaon. The rules, which may appear health, it is a fitness certificate for work – some of the support firms and sub contractors 99% of the staff at Cairn Oil and Gas goes a bit tedious for an outsider, are mandated by which is all encompassing. working in the field. All company employees through annual health checks and are allowed the firm in every aspect of their operations. HSEQ division is a broad, all inclusive are required to adhere to its norms on HSEQ. back in the field only after being cleared by the For instance, the maximum speed limit of all division, where processes and regulations This has led a to a largely healthy and safe doctor as well as their divisional head, which company vehicles is 60 kilometres per hour, are drawn up and implemented throughout all environment throughout Cairn Oil & Gas’s ensures optimal productivity of man-hours. irrespective of the traffic on the road or the departments of the oil and gas firm. From very operations. “We host special training sessions According to Tiwari, HSEQ is paramount to lack of it. Similarly, all passengers – whether visible and clear instructions to employees for our vendors and support companies so that successful business operations. He explained in the front of the vehicle or behind are and visitors alike, Cairn Oil & Gas’s HSEQ our norms of HSEQ are met by the employees that when safety norms are adhered to, the mandated to wear seat-belts and all visitors to messaging is relentless in its workspaces. of these units as well,” said Tiwari. health of employees, environmental impact field operations are required to wear all safety Tiwari said, “Safety based on an emotional While it is hard to imagine that a heavy and quality are all automatically taken care gear from the gas mask, which is needed only connect and through our training, messaging, industry like oil and gas can maintain the of. “If process safety is followed a number in case of an accident, to the overalls and the constant contact, acceleration matrix and highest standards of HSEQ, the internal of other aspects all fall in line one after the hard hat. repeated conversation around HSEQ, we indices of the company show that they do. other,” said Tiwari.

18 19 Cairn Oil & Gas Focus: csr

team alone but requires buy-in from top-down. imperatives. Ultimately, corporate social need of the community and based on the It is the commitment from the organization’s responsibility is a win-win proposition for your information gathered, decided to focus on the leaders to every employee of the organization company, the community, employees, and areas of health, education, skill development, who follows it to completion. customers. safe water access, and natural resource The guiding principles of CSR initiatives management, including agri- and horticulture are as follows; first, that all our programs Q. CSR initiatives under Cairn initiatives, animal husbandry, and dairy. will be designed based on community-needs Oil & Gas at Barmer, predate The Cairn Enterprise Centre imparts assessments. the Government mandated vocational skills like electrical repair and The plans are prepared per the community expenditure under the fittings, computing, mobile phone repair, needs assessment through an outsourced Companies Act 2013. Could masonry, as well as soft skills like English- reputed agency with defined timelines. These you elaborate the development speaking and digital literacy. Since inception, assessments are done on a regular basis and of the company’s social around 14,000 local youths have been trained. are followed by the impact assessment of each interventions? The Jeevan Amrit Project enabling safe program implemented. This helps in revising The Ministry of Corporate Affairs, Government drinking water access, has built 124 RO plants and reframing CSR strategy and programs as of India, has brought business responsibility in and around 124 villages. the programmes progress centerstage, which is different and distinct The inhabitants of Barmer are based in The second factor is that we try to charity or philanthropy.. hundreds of hamlets across the district and augment government programs and focus on Irrespective of, and before the companies it is difficult for villagers to travel to the strengthening government institutions through act 2013, the company has been committed to District Hospital. Therefore, our healthcare a collaborative approach, so that should there conduct its business in a socially responsible initiatives have ensured the District Hospital be a time when Cairn Oil & Gas withdraws, the manner. renovation, and provision of three specialists scheme does not disappear. The driving force for CSR, has always been for specialized health services, housekeeping The CSR team studies available the vision of our Chairman to give back to the staff for maintenance of hygiene and sanitation Government social programs and schemes. community. He strongly believes in proactively in the premises, seating arrangements In conversation with Harmeet Sehra The implementation model as well as the engaging with communities and operating for patients, Information, Education and gap between community and government through free and informed consent. He believes Communication Head - CSR at Cairn Oil & Gas programmes may vary depending on the that the community has the right to know (IEC) activities on seasonal and demography, area, logistics, and resources what the business outcomes will be and what communicable diseases, etc. of each area. The team also focuses on these outcomes would give in return to the Healthcare has further become more programs for strengthening these gaps to community. accessible through six Medical Health Vans Business operations and Corporate Social ensure that the benefit reaches the bottom It is his vision that led the CSR team to to reach the furthest areas in more than 166 of the pyramid. The programs strategically work for the development of the community villages. Medicines are distributed free of cost Responsibility (CSR) have played an equal converge to ensure maximum benefit to the even before The Companies Act required us for the community. community and minimum duplication. We focus to. No doubt the Companies Act has enabled part in transforming Barmer on longevity and sustainability, and to ensure a structure and framework for businesses to Q. In your view which is the best this we always have an exit strategy built into work with. initiative in Barmer at present? Q. What do you think has access to healthcare and clean drinking water provided employment opportunities to local our CSR programs – where we work towards Even initially, the CSR team studied the The Natural Resource Management projects been Cairn Oil & Gas role and sanitation, as well as education, skilling, skilled people, with as many as 88% of its handing programme ownership to the local in transforming the Barmer and livelihoods, we have touched almost the agency staff being from local communities. communities. landscape and the lives of the entire population of Barmer and Jalore districts The company has also provided job The success of implementation of our CSR locals and seen a dramatic change over the past opportunities to 21,710 locals in an around programs is the result of following company The impact on society has been two-tier – decade. our assets. Besides employment, over the core values, which when followed, create a one, from the company’s Corporate Social In CSR, Cairn has provided employment last decade, Cairn has hired thousands of habit that soon becomes DNA. These values Responsibility (CSR) initiatives, and the other opportunities to local youth through its three- local vehicles, equipment, and spawned local are Care, Respect, Trust, Entrepreneurship, is a direct result of its business operations. We skill training centres in Rajasthan - Barmer, entrepreneurs, including many whose turnovers Integrity, Innovation and Excellence. have had the advantage of becoming a strong Sanchore and Jodhpur. Since commencement are in crores. Besides this, credible and expert partner case study, which demonstrates that industry of operations in 2009, Cairn has been able to agencies for implementation of the programmes can have direct social impact, aside of the train more than 14,000 students and 10,000 Q. Briefly could you explain the helps Cairn deliver the scope more effectively impact that CSR programs have on the ground. farmers, providing them farm or non-farm- policy or thought in selecting and efficiently. These are selected through a Personally, the story that appeals to me is based livelihood opportunities, thus increasing and executing the numerous stringent process. the business impact Cairn Oil & Gas has had in the income of the people by approximately. INR CSR projects in Barmer? Nothing of value comes easily. When CSR Barmer. The district’s contribution to the state 8,000 to 12,000 per month initially. Corporate social responsibility is hard work. initiatives are successful, the organization GDP is second only to Jaipur. Cairn has not only engaged locals in its It is a work of passion and dedication which will enjoy improved morale and productivity. Our CSR initiatives have had a business operations but also through its CSR must be done with transparency. The success Furthermore, you will see how doing good transformative impact as well. From better implementiong partners. The CSR team has of any CSR initiative does not depend on the can positively impact your triple bottom line

20 21 Cairn Oil & Gas Focus: csr

have increased the income of more than of milk on a daily basis. Farming, agriculture and animal husbandry 12,000 agriculture and dairy farmers through Our focus has been to reach an advanced is part of the culture of the nation and a productivity enhancement of their agriculture agrarian and animal husbandry technology self-sustaining business for every individual and livestock. 1,210 orchards (Wadi) have to the villagers. Through government and who has land. The economy of Barmer is been developed by planting more than 1 private banks and microfinance institutions, agriculture-based and the region is responsible lakh saplings. Our efforts have resulted in we have created access to these specialized for among the highest milk production. an increase in the cultivable area in the technologies that increase yield and produce Rajasthan has among the largest animal fairs remote desert district of Barmer as well as quality. across the nation. However, the methods created direct linkages between farmers and are still primitive, and access to water is the procurement agencies. Q. Why is natural resource biggest challenge. Under this project we have dredged 17 old management the best initiative It is always better to strengthen existing lakes and ponds (Nadi) that were overflowing according to you? skills than creating new ones, which may not with silt, which has improved the water NRM has enabled a holistic and sustainable be aligned with available resources, or the need harvesting in the region significantly. The silt growth in Barmer, in a sector that is the and demands of the community. that was extracted from these lakes and ponds region’s traditional mainstay. It has increased For instance, dairy production has improved, was distributed among the local villagers, who the income level of the farmers, increased farmer revenues have increased anywhere in turn took it to their farms to improve the soil the availability of water for agriculture, and between 20% to 50%, which is a huge jump. quality So it became a self-sustaining initiative. supported the region’s bio-diversity. Today, there is there is pomegranate farming, Intervention in the dairy sector has also The early farmers who joined our initiatives there is Ber farming where large fruit-bearing been very productive and lucrative for the dairy have become like consultants and leaders of and resilient varieties are thriving. Drip producers, where several hundred thousand the movement, helping change and improve irrigation is used to reduce water requirements litres of milk is collected by dairy cooperatives. farming and animal rearing methods in the in these farms. They also cultivate Ker Sangri, Almost a decade after the inception of this region. jeera, and some other spices that do well in dairy project, the revenue generated by around There are thousands of farmers coming to the local markets. Barmer is an arid region Barmer beyond 4,000 dairy farmers has crossed ~ INR 74 these model farms called wadis, to learn and in the middle of the desert, and now there crore witnessing a production of over 2.6 crore use these technologies in their fields – so we are suddenly pockets of very fertile and high litres of milk from across 41 villages in Barmer notice that from the push effect now we have yielding farms – almost like an oasis. It is and Jalore districts in Rajasthan. The dairy moved to the pull effect – where the demand is beautiful to see pomegranate trees in full oil and gas cooperatives produce close to ~15,500 litres coming from the ground. bloom, unlike anywhere else. At Cairn Oil & Gas, social iving back to society and local through improving agricultural and dairy community is a mantra all successful practices, the company has begun to move interventions have been part businesses are based on. However, steadily towards sustainable development in of the company’s DNA long Gthe company has taken this philosophy the truest sense. beyond charity and attempts to address the Often, CSR programs are located only in the before the Corporate Social core needs of the community in the desert vicinity of a company’s industrial operations Responsibility (CSR) Rules district of Barmer. And this is evident in the but at Cairn Oil & Gas there is an aggressive spurt of economic activity in the district push to reach maximum number of people in came into force and as a after Cairn Oil & Gas came to Barmer and the whole district not just those in the vicinity result the impact on local is further enhanced by the Corporate Social of the plant. “If one focusses only on the Responsibility (CSR) spending in the region. people that fall in the vicinity of the company community is very evident. From the total Cairn Oil & Gas CSR budget operations it is likely to lead to social disparity Equating the work done for in FY 2017-2018 of Rs 23 crore almost 80%, in the region – those who are associated with which is around Rs 20 crore was spent in the company and those who are not... This community upliftment with Barmer. In 2019, the oil and gas company’s can lead to social unrest stemming from the sustainability, Cairn Oil & budget has risen to Rs 53 crore of which marked inequality in standard of living,” said again a substantial portion is to be spent in Rajesh Mohata, Director Procurement and Gas strives towards moving Barmer. With an exhaustive portfolio of social Supply Chain Management at Cairn Oil & Gas. beyond just philanthropic interventions (see graphic) – from access He added that whether it happens tomorrow to clean drinking water, toilet building and or in the next decade, social unrest is most activities under their CSR awareness programs under sanitation drive, harmful to any business process. programs. to facilitating rural electrification through Another aspect of reaching sustainability solar energy, operating mobile health vans to in their social interventions has been to reach far flung villages in the Thar desert to include an exit strategy from the beginning create opportunities for better self employment of the program. For instance, one of the first

22 23 Cairn Oil & Gas Focus: csr

skills and improving self employment in the and Company logistics will tell you. region. The health sector in Barmer has seen a The Cairn Enterprise Centre (CEC) and complete overhaul due to the company’s Cairn Centre of Excellence in Jodhpur (CCOE) presence – not only because of the direct CSR have become most sought-after institutes in interventions the company has undertaken the region, by the youth, due to the quality but also because of the manner in which it of skill development here and the access to has successfully augmented government possible employers. CEC offers short term infrastructure. Apart from the mobile health The ‘can-do’ approach of Cairn skilling courses like mobile phone repair, data vans, which are able to reach far-flung villages Oil & Gas has been beneficial entry operators training, electrician training, of Barmer, Cairn Oil & Gas supports the salary to all partner companies as plumbing and masonry work. There are a of three specialised doctors at the Barmer well. The company’s appetite number of graduates of this centre who have district hospital. The hospital now tends to for high-end technology and gone on to become entrepreneurs – opening anywhere between 3,000 to 4,000 patients in digitalisation gives us the own businesses or shops where they have the OPD daily. It also sponsors 60+ sanitation hired 3-5 more individuals to work under workers at the hospital to maintain high freedom to deliver industry- them. CCOE runs longer term courses where standards of sanitation and hygiene. leading solutions. Cairn Oil & Gas being awarded new blocks under OALP is great news and it gives us the opportunity of expanding our work scope in this area, as well. Scott Cooper MD Halliburton India

initiatives undertaken by the oil and gas giant water is sold at low rates to the villagers and to eat.” in Barmer was to provide access to safe its maintenance is now completely in the Apart from the expected results of Cairn drinking water through installation of large hands of the local community. Oil & Gas’s CSR activities – of increased RO plants. These plants were operationalised Similarly, the company built more than agricultural income, higher returns in dairy through a tripartite agreement between a 20,000 toilets across the Barmer district, farming, increased availability of drinking vendor, the villagers and the company. As of which are now all under the control of the water – some unexpected and encouraging signs are also emerging. It is hard to believe, but even in 2019, Rajasthan is known for its issues related to caste and gender bias. Initially, Cairn programs focussed Interestingly, ever since the firm began work in the region these issues have begun to resolve on going wide instead of going deep themselves. A shining example of this would Cairn Oil & Gas partnerships be the dairy farming initiative, where Cairn have been radical right from Government of Rajasthan is a part of the Harmeet Sehra, CSR Head at Cairn Oil & Oil & Gas has helped set up 36 cooperatives. the start. For instance, the tripartite agreement and the graduates from Gas, explained that many of the company’s where the company looked to provide “This program was initially shunned by few traditional approach for oil there are often recruited by the oil support CSR projects augment government efforts in community leaders,” explained Ayodhya and gas operators has been to companies in the region. order to ensure the longevity of the programs, Prasad Gaur, General Manager Corporate essentials that everyone in the region break a project’s development These training centres have also been even if the company exits the region “That is Communication. However, he added, once used to help the local businessmen. Rajesh unlikely to happen any time in the near future the villagers saw the financial benefits of into sub-elements and then Mohata explained that local vendors had not but as a responsible corporate we have to needs including access to safe drinking the program, they have forgotten their caste bid each out separately as part been exposed to automated processes before plan for long-term sustainability,” Jha added. differences and work together to ensure of L1, where the lowest bidder Cairn Oil & Gas‘ operations began. “In order The most quoted program is the company’s water and healthcare. greater revenue and reach from their dairy wins. But Cairn has partnered to help these individuals, we trained them in flagship modern Anganwadis – called Nand business. for entire projects with a single computers skills... It was minor things that Ghars, where the company has attempted to Initially, its programs focused on going wide award and built-in bonuses for we take for granted, for example we created address government schemes and policies instead of going deep where the company billing templates and email ids for them and related to child-welfare and nutrition. 2019, a large number of these plants have community. According to Bhanu Pratap Singh, looked at providing essentials that everyone early delivery and delivering taught them to use email,” he said. These Employing engaging methods of teaching been handed over to the local communities, director of the livelihood branch of the CSR in the region needs including access to safe more oil. skills have gone far in improving employment like dramatic representation or songs about who have set up village committees and hired initiatives, “It is far more important to teach a drinking water and healthcare. And slowly now Ashish Bhandari opportunities for the local communities as a sanitation, hygiene and nutrition, these units individuals to run the plant. The clean drinking man how to fish than to just hand him a fish the company is focusing more on imparting CEO (India and South Asia) number of businessmen like Lalit Kiri of Kiri are fitted with the latest technology of large GE Baker Hughes 24 25 Cairn Oil & Gas Focus: csr

Access to healthcare flat screen televisions for interactive learning self-sustaining initiative,” said Singh. 3 specialist doctors supported at the Barmer and solar panels making them self sufficient The natural resource management program district hospital and attractive to the children attending these also looks to improve livelihood opportunities Sanitation 2 First Referral Units (FRUs) reaching 24,000 centres. and has done so in the areas of agriculture 20,500 household toilets built (including patients annually The most far reaching and long lasting and dairy farming. “The early farmers who 4,000 toilets with bathrooms and 188 school 10 mobile health vans reaching 1.46 lakh people impact of Cairn Oil & Gas‘ social interventions joined our initiatives have sort of become like toilets) in Rajasthan annually has been under its natural resource consultants and leaders of the movement to 27 schools touched by ‘total sanitation 60+ sanitation staff hired for Barmer district management programs. “It is a comprehensive change and improve the farming and animal campaign’ impacting 7,000 students hospital method to address a number of challenges In the years to come, Cairn Oil rearing methods in the region. There are Assisted government efforts of ODF in Gida 14,000 students touched by Swastha Pathshala arising out of the harsh environment of the & Gas along with its business hundreds of farmers coming to these model and Baytu block Abhiyan focussed on behavioural change Barmer declared ODF in June 2018 desert,” said Bhanu Pratap Singh. Citing partners will have a significant wadis to learn and use these technologies in regarding sanitation and awareness the example of one of the largest lakes near role in shaping India’s energy their fields – so we notice that from the push Barmer town, Singh explained the pond was effect now we have moved to the pull effect – future. As we have already overflowing with silt till a couple of years where the demand is coming from the ground,” ago and would not hold water for more than seen over the past decade, the Singh said. As per the firm’s calculations, a month after the monsoon season. The company has made use of the farmer revenues in the region have increased company’s CSR team brought together the five challenging E&P environment anywhere between 20% to 50%. Providing access to villages, which use this pond as their common and is on top of the list of Continuing focus on sustainable and long- safe drinking water: water source, and recommended they dredge India’s fastest-growing term projects, the company is expanding its Jeevan Amrit program the silt out. This process was agreed upon CSR footprint into remedial and experiential 124 RO plants installed in companies with its sustained and the whole community came together and education in government schools. “We hope Barmer Skill development contribution to India’s quest for cleaned out the pond with help of required to reach those students that inevitably drop 15,000 registered users across Child-welfare Cairn Enterprise Centre, Barmer has equipment like JCBs provided by Cairn Oil & energy security. out of school due to lack of understanding or 144 villages in Barmer 50 Nandghars benefiting 1,500 trained over 14,000 youth, with record Gas. The silt that was dug out was then given Gautam Reddy interest,” said Sehra. Having completed a pilot children and 500 women in Barmer placement ratio of close to 80% to the farmers to use as fertilisers in their Senior Product Engineer, project, the program is set to roll out to 30 1,500 women have been provided Cairn Centre of Excellence at Jodhpur fields. The lake now holds water throughout Schlumberger schools in the coming financial year and reach skill training the year and has also begun to witness 80 schools in the next three years. migratory birds. “The whole process became a

Education 188 schools covered in Rajasthan 37,000 students benefited from solar Agriculture electrification and mobile science van initiatives 1,214 wadis set up by planting 80,000 85 schools installed with roof-top water fruit saplings harvesting structures saving 5,000 cubic metres Over 17 lakh cubic metre water harvested of rain water and benefiting 17,000 students annually 19 community ponds (nadis) renovated 781 Khandis constructed along with rooftop water harvesting in 85 schools 6,000 ton of fertile soil recycled

Dairy development 36 dairy cooperatives across 32 villages 20 women self-help groups with 259 members set up Rs 62 crore revenue generated by the dairy farmers 2.2 crore litres of milk produced through these cooperatives

26 27 Cairn Oil & Gas

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