From sand dunes of Rajasthan to choppy waters of KG Basin: Vedanta's oil & gas ambitions
Quietly but purposefully, Vedanta is going about pushing investments into its oil & gas asssets 8A set of big investments have already been put into action, with contracts awarded. 8It is also following up aggressively on an exploration programme, both onshore and offshore, in search for new reserves. 8Vedanta, just like RIL, understands how to do business in India and is very bullish on how much further it can push its E&P assets. 8Vedanta chief Anil Agarwal leaves no stone unturned in New Delhi's corridors of power to get what he wants. 8Unlike RIL-BP, Vedanta has plans to aggressively look for new acreages in the OLAP rounds 8A part of the bullishness stems from the fact that it believes that Indian E&P can give 20% or higher returns at less than $40/bbl. RIL-BP on the other hand did not share such an experience 8The Vedanta confidence stems from its success in keeping production cost extremely low in its Barmer field. Barmer's water flood OPEX was at a mere $4.3/barrel. Blended operating cost was at $6.4/barrel. 8But the sand dunes of Rajasthan are different from the choppy waters of the KG Basin. 8Only time will tell whether its ambitious foray into offshore exploration will bear results. Click on Reports to understand Vedanta's ambitions on the oil & gas front.