Vedanta plans to trim crude oil production cost in Rajasthan

The company plans to invest about $200 million in FY27 across Rajasthan North, comprising the Mangala, Bhagyam and Aishwariya fields. Vedanta is targeting production of more than 150,000 barrels per day (bpd), compared with around 80,000 bpd currently, through polymer flooding, well interventions and other enhanced-recovery measures. Vedanta has recovered around 41% from its producing wells and is targeting a recovery rate of 60%.

“Over the last 20 years, the country’s total crude production has remained stagnant at around 0.87-0.99 mmboe, while consumption has gone from 2.65 to 5.6 mmboe. We are trying to explore small sedimentary basins which provide vast opportunity, and increase production from existing wells, which will reduce this huge gap,” Gast said. The production push comes as Vedanta Oil & Gas’ overall output has declined.

Average gross operated production fell 17% year-on-year to 77.7 thousand barrels of oil equivalent per day (kboepd) in Q1 FY27, from 93.2 kboepd a year earlier. Production declined further to 72.2 kboepd in Q2 FY27. However, it reported a 34% year-on-year rise in EBITDA to `1,393 crore, while revenue increased 7% to `2,486 crore. Net profit stood at `746 crore. Rajasthan remained its largest producing asset, contributing 63.1 kboepd, or about 81% of total gross operated production in Q1.

Ravva contributed 7 kboepd, Cambay 4.6 kboepd and the OALP portfolio 3.1 kboepd. The commissioning of HPCL Rajasthan Refinery’s 9 million tonnes per annum Pachpadra complex in Barmer has also created a refining outlet close to Vedanta’s producing fields. The refinery is designed to process 1.5 MMTPA of Rajasthan crude. Beyond Rajasthan, Vedanta is looking to the Northeast for its next growth leg. Its Hazarigaon field in Assam recorded its highest-ever gas production of 178,361 standard cubic metres per day during extended well testing.

The field has an estimated recovery potential of 11.76 BCF, or about 0.33 BCM, while its approved development plan provides for output of up to 24 MMSCFD. The company holds nine OALP blocks and one discovered small field block in the Northeast and is working with Beicip-Franlab to mature prospects with potential resources and reserves of up to 300 million barrels of oil equivalent.