Vedanta to invest $2.3b in ‘near term’

Vedanta to invest $2.3b in ‘near term’

A bird flies past the logo of Vedanta installed on the facade of its headquarters in Mumbai. REUTERS

Vedanta has said it will be investing $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 $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 kb oepd through executing growth projects, with opex of sub-USD 7/boe (Barrel of Equivalent).

“We estimate the net capex commitment at $600-800 million (for FY 19),” it said.

Kuldip Kaura, Chief Executive Officer of Vedanta, said the company’s vision was to contribute 50% of the country's domestic crude oil production by increasing their gross production to 500,000 boepd.

“Working towards this goal, we announced 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.