New Delhi : Cairn Oil & Gas Ltd, a subsidiary of global mining and energy conglomerate Vedanta, on Wednesday announced that it has been granted a 10-year extension of the Production Sharing Contract (PSC) for the Ravva block in Andhra Pradesh. The extension which is valid effective 28 October 2019, for the next 10 years, was cleared by the Directorate General of Hydrocarbons, under the Ministry of Petroleum and Natural Gas, Government of India.
Ravva, the oldest producing asset in India for Cairn, becomes the first large field to get PSC Extension under the “Policy for the Grant of Extension to the Production Sharing Contracts signed by Government awarding small, medium sized and discovered fields to private Joint Ventures”.
The extension will enable the Joint Venture partners to recover about 13 million barrels of oil equivalent (boe) of oil. In addition, the JV partners will invest around INR 550 crore (USD 78 million) to drill seven Revised Field Development Plan (RFDP) wells targeting additional reserves of 11.7 million boe. These campaigns put the JV on course for yet another milestone in hydrocarbon recovery from this world-class offshore asset.
“The Ravva PSC extension is one more example of the trust the government has reposed in us. We look forward to working with all our partners towards achieving our vision of contributing 50 percent of the country’s domestic production and supporting the government in its energy security goals” Anil Agarwal, Chairman, Vedanta Resources Ltd., said.