Vedanta gets 10 year extension approval of PSC in Andhra Pradesh
The Government of India, acting through the Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas, has granted its approval for a 10-year extension of the production sharing contract (PSC) to Cairn Oil & Gas vertical of Vendata Limited, for the Ravva block in Andhra Pradesh. With this extension, the PSC is now valid, effective from October 28, 2019, for the next 10 years.
Ravva, the oldest producing asset in India for Cairn, becomes the first large field to get PSC Extension under the ‘Policy for the Grant of Extension to the Production Sharing Contracts, signed by the government, awarding small, medium sized, and discovered fields to private Joint Ventures’.
The extension will enable the joint venture partners to recover 13 million barrels of oil equivalent (BOE) of oil. In addition, the JV partners will invest ~Rs. 550 crores (US$78 mn) to drill 7 Revised Field Development Plan (RFDP) wells, targeting additional reserves of 11.7 million BOE. These campaigns put the JV on course for yet another milestone in hydrocarbon recovery from this world-class offshore asset.
The company has been a pioneer in speedy adoption of cutting-edge technologies, and this was demonstrated best at Ravva where Cairn took production up from 3,000 to 50,000 BOE a day and sustained this production for nine years.
On Wednesday, the stock of Vedanta opened at Rs. 156.50. In the morning trading session, it surged by 2.4 per cent to Rs. 161.15.