New Delhi: Vedanta Resources has renewed its Production Sharing Contract with the government for its Ravva block in the Krishna-Godavari basin, highly placed sources have confirmed to BTVI. Cairn India, which is a subsidiary of Vedanta Resources has also roped in Halliburton for further exploration at Ravva. The operator of Ravva field with 22.5% stake had applied for an extension of the contract, which was set to expire in December 2019. Earlier the company had received a five years extension of the contract in 2014.
This comes amidst the recent exits - CEO Sudhir Mathur and CFO Pankaj Kalra - which had its impact on trade. However, sources say that these exits are in no way going to cast a shadow on the company's exploration and production targets. Cairn India which now contributes to nearly 27% of India's current oil production, has an ambitious target of increasing it to 50%. Ajay Dixit, the CEO of aluminium and power divisions of Vedanta has stepped in as the interim CEO of Cairn India.
The company is now all set to revive the Ravva block by drilling two new wells, where production has been dwindling over the years. "We will start drilling wells around the end of July or in August", said a senior official who did not wish to be named. BTVI had earlier reported that Cairn wished to start the drilling work this May, however the onset of monsoon is likely to delay the process.Movement of rigs on slippery slopes become difficult and risky during monsoon season.
The gross volumes from Ravva field in Q3FY19 stood at 16.8 Kbpd (Thousand barrels perday) compared to 16.9 Kbpd in Q3FY18. The volumes are expected to average 15.1 Kbpd for this fiscal year compared 17.2 Kbpd in the previous fiscal year.
Production from Ravva block peaked in 2015 when it produced around 30,000 bpd on an average after which it started declining. Cairn arrested the decline by using Time Lapse (4D) seismic technology. The block had around 50% recovery factor against the average 25-30% recovery factor for oil and gas fields in India.