The contract is now effective from October 28 for the next 10 years, Vedanta said in a statement released on Wednesday. The approval was directed through the Directorate General of Hydrocarbons which is under the Ministry of Petroleum and Natural Gas.
Ravva, the oldest producing asset in India for Cairn, becomes the first large field to get production sharing contract extension. The move will enable joint venture partners to recover about 13 million barrels of oil equivalent (BoE) of oil.
In addition, the joint venture partners will invest Rs 550 crore to drill seven Revised Field Development Plan (RFDP) wells targeting additional reserves of 11.7 million BoE. These campaigns put the joint venture on course for yet another milestone in hydrocarbon recovery from this world-class offshore asset.
"The Ravva production sharing contract extension is one more example of the trust the government has reposed in us," said Chairman of Vedanta Resources Anil Agarwal.
"We look forward to working with all our partners towards achieving our vision of contributing 50 per cent of the country's domestic production and supporting the government in its energy security goals."
The company has been a pioneer in speedy adoption of cutting-edge technologies, and this was demonstrated best at Ravva where Cairn took production up from 3,000 to 50,000 BoE a day and sustained this production for nine years.
"Fast-tracking decision making will help quicker and timely recovery of these additional reserves," said Ajay Kumar Dixit, Chief Executive Officer at Cairn Oil and Gas, Vedanta Ltd.
"Ravva is a fine example of augmenting production in an ageing oil field with the help of the most advanced technological interventions in the industry globally. We have also always advocated a sustainable and safe work environment and Ravva has been a testament to our efforts with a slew of awards to its credit. Our endeavour is to make Ravva a global case study for enhanced recovery in an ageing oil field."
Vedanta Ltd, a subsidiary of Vedanta Resources Ltd, is one of the world's leading diversified natural resource companies with business operations in India, South Africa, Namibia and Australia. It is a leading producer of oil and gas, zinc, lead, silver, copper, iron ore, aluminum, steel and commercial power.