Vedanta to invest $245m on Indian oil, gas blocks
KOLKATA (miningweekly.com) – Anil Agarwal-led resource major Vedanta Limited will invest around $245-million in natural gas and crude oil over the next four years in licences it bagged for ten blocks across India.
Vedanta said in a statement that “the company has been successfully awarded ten exploration blocks across Indian sedimentary basin auction under Open Acreage Licensing Policy (OALP) with total bid amount of $245-million”.
Vedanta bagged the ten blocks, of which seven were onshore and three were offshore, under OALP rounds of auction II and III, which were announced by the government early this week.
Under previous OALP rounds of auction the company had bagged 41 of the total 55 blocks put up for bidding and had already committed exploration investments of around $551-millon.
“Vedanta will enter into 10-year revenue sharing contracts with the Indian government for the latest blocks secured at the auction,” the company statement said.
"Following the signing of revenue sharing contract, a license permitting exploration, development and production operations of all types of hydrocarbons will be granted pursuant to the terms of the relevant to each of the block,” Vedanta said.
The exploration period would stretch over two phases: the initial exploration phase and the subsequent exploration phase. In total, the exploration period will have a six-year duration for all blocks, subject to any extension that might be sought by the exploration and production major, subject to government approval.
The development and production period of each contract will be a maximum of 20 years from the date of the grant of the petroleum mining lease following discovery of previously unknown deposits of hydrocarbons and approval of the relevant field development plan, subject to any extension granted.
"The group believes that the transaction complements its existing strategy to focus on production growth. These blocks awarded under OALP bid round II and III, complement the 41 blocks secured in earlier OALP auctions,” the company said.
“The OALP bid rounds provide an opportunity for Vedanta group of companies to acquire new acreages from additional sedimentary basins of India and utilize synergies from the blocks already secured," the company added.
The objective of licensing the blocks is to acquire fresh seismic data and drill exploration wells to establish resources and reserves of oil and natural gas.
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