Vedanta to invest $245M in 10 oil, gas blocks

08 July 2019

Vedanta said that it will invest USD 245M for finding oil and natural gas over the next 3-4 years in the 10 areas it won in the latest licensing round.

The firm won 10 blocks, 7 onshore and 3 offshore, in the Open Acreage Licensing Policy (OALP) Round-II and III. Vedanta had won 41 out of the 55 blocks in OALP-1 bid round and committed to investing USD 551M.

"Vedanta Ltd has been successfully awarded 10 exploration blocks in sedimentary basins throughout India pursuant to the OALP at a total bid cost of USD 245M," the firm said in a statement.

The company will enter into 10 revenue sharing contracts (RSCs) with the government.

"Following the signing of the RSCs, a licence permitting exploration, development and production operations of all types of hydrocarbons will be granted pursuant to the terms of the relevant RSC in relation to each Block," it said.

The exploration period shall consist of two phases, the initial exploration phase, and the subsequent exploration phase. In total, the exploration period will be a duration of six years for all Blocks, subject to any extension granted.

The development and production period of each contract will be a maximum of 20 years from the date of grant of the petroleum mining lease following the discovery of previously unknown deposits of hydrocarbons and approval of the relevant field development plan, subject to any extension granted.

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