Vedanta Oil and Gas is reportedly set to inject approximately $200 million (₹2,000 crore) into its established Rajasthan oil fields during the 2026-27 financial year. This substantial investment aims to significantly increase crude oil production from existing wells, countering natural reservoir decline and enhancing recovery rates.
Boosting Output from Key Fields
The primary focus of this investment will be on the crucial Mangla, Bhagyam, and Aishwariya fields located in northern Rajasthan. Vedanta's immediate priority is the Mangla field, which was discovered in 2004 and established Barmer as a major onshore oil-producing region in India. The company targets an ambitious increase in production from Mangla, aiming for more than 150,000 barrels per day (bpd) from its current output of around 80,000 bpd.
Advanced Recovery Methods
To achieve these production targets, Vedanta plans to implement advanced enhanced oil recovery (EOR) techniques. These methods include:
- Polymer flooding
- Well interventions
- Alkaline-surfactant-polymer (ASP) injection
These techniques are crucial for maximizing the extraction of crude oil from mature reservoirs, where natural pressure has declined.
Addressing India's Energy Demand
Jim Johnny Gast, interim CEO and whole-time director of Vedanta Oil and Gas, highlighted the critical need for increased domestic production. He noted that India's total crude production has remained largely stagnant over the past two decades, hovering between 0.87-0.99 million barrels of oil equivalent per day (mmboe), while consumption has almost doubled from 2.65 to 5.6 mmboe. Gast emphasized that higher recovery from existing wells is vital to narrowing this widening supply-demand gap.
“Over the last 20 years, the country's total crude production has remained stagnant at 0.87-0.99 mmboe, while consumption has nearly doubled from 2.65 to 5.6 mmboe,” Gast stated, underscoring the importance of their efforts.
Vedanta's average gross operated production in the first quarter of the current financial year stood at 77.7 thousand barrels of oil equivalent per day (kboepd), with Rajasthan accounting for 81% of this total. The company has already achieved a 41% recovery rate from its producing wells and aims to push this figure to 60%. Beyond Rajasthan, Vedanta is also exploring opportunities to develop the northeast region as a new hub for gas growth, further diversifying its energy portfolio.