Vedanta to invest USD 2.3 billion in 'near term' on oil& gas

According to its latest annual report, Vedanta aims to increase production from the current 200,000 barrels of oil equivalent per day to 300,000 boepd over the next few years. "In the near-term, we are investing gross capex of USD 2.3 billion to increase our resource and reserve base by around 375 million barrels.

Vedanta Limited has said it

will be investing USD 2.3 billion towards capex on its oil and

gas activities in the 'near-term' to increase the reserve base

by around 375 million barrels.

According to its latest annual report, Vedanta aims to

increase production from the current 200,000 barrels of oil

equivalent per day to 300,000 boepd over the next few years.

"In the near-term, we are investing gross capex of USD

2.3 billion to increase our resource and reserve base by

around 375 million barrels. Our rich project portfolio is

comprised of enhanced oil recovery projects, tight oil, and gas

projects and exploration prospects.

As well as boosting production, this investment will

generate sustainable employment opportunities, directly and

indirectly and bring cutting-edge solutions to community

needs," the metals and mining giant said.

For FY2019, it expects to achieve a significant growth

in production with total volumes in the range of 220-250

kboepd through executing growth projects, with opex of sub-USD

7/boe (Barrel of Equivalent).

"We estimate the net capex commitment at USD 600-800

million (for FY 19)," it said.

Kuldip Kaura, Chief Executive Officer of Vedanta, said

the company's vision was to contribute 50 percent of the

country's domestic crude oil production by increasing their

gross production to 500,000 boepd.

"Working towards this goal, we announced the growth

projects, including Enhanced Oil Recovery (EOR), tight oil and

gas projects, upgrade of liquid handling facilities and

exploration, for which key contracts have been awarded to

world-class partners.

These projects, along with an exit run rate of 200,000

boepd in March 2018, will pave the way to achieve 300,000

boepd in the near-term and 500,000 boepd in the medium-term,"

he said.

As the largest private sector producer of crude oil in

India, and with a strong track record and growth pipeline in

exploration and development, Vedanta is well positioned to

benefit from the Governments desire to boost domestic

production and to leverage Indias oil and gas resource

potential, it said.

Vedanta had recently bid for all 55 blocks on offer in

the first round of oil and gas auctions under the Open Acreage

Licensing Policy (OALP) auction.

The Anil Agarwal-led Vedanta is likely to bag as many

as 40 oil and gas exploration blocks in India's maiden open

acreage auction, official sources had earlier said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)