Anil Agarwal’s Vedanta Ltd will invest USD 1.5bn across its oil and gas, zinc, and steel businesses.
Its board at a meeting approved USD 687M capital spending for drilling of new wells at the firm’s oil and gas unit, Cairn Oil & Gas, Vedanta said in a stock exchange filing.
It also approved a USD 466M phase-2 expansion of the Gamsberg zinc project in South Africa and another USD 348M for steel expansion.
The USD 687M “Capex investment is towards infill wells, development, and exploration. The strategic priority for the Cairn Oil & Gas business is to increase near-term volume through infill wells and add resources through exploration,” the filing said.
It said that USD 360M have been earmarked for infill wells in the prolific fields viz Mangala, Bhagyam, Aishwariya, Aishwariya Barmer Hill (all in Rajasthan block), and Ravva in eastern offshore.
“The exploration work programme with Capex investment of USD 327M shall be spread across the OALP blocks and PSC blocks including pilot wells for shale,” it said.
The company had bid and got some blocks for exploration of oil and gas under the Open Acreage Licensing Policy (OALP) over the last few years.
The Gamsberg Phase II Expansion Project for USD 466M will double up capacity to 8 million tonnes per annum to produce additional 200,000 tonnes a year of MiC Zinc. “This project will bring significant socio-economic benefit and will make Vedanta Zinc International as largest zinc producer of South Africa,” Vedanta said it will invest USD 348M in a 3 million tonnes project of its subsidiary ESL Steel Ltd.
“The steel expansion project with an investment of USD 348M comes with additional blast furnace supported coke ovens, pellet plant, oxygen plant, and other auxiliaries and infrastructure up-gradation including railway siding to plant head,” it said.