Vedanta, which received a 10-year extension in its contract for the prolific Rajasthan oil block, is planning to expedite its $4 billion capex plan.
According to Sudhir Mathur, chief executive officer of its oil and gas business, the company expects there could be an increase in its capex going ahead based on exploration work.
According to an ET report, Vedant’s oil and gas division, formerly Cairn India, has a 25-year contract for exploration and production of oil and gas from Barmer (block RJ-ON-90/1) which comes to an end in May 2020, after which the extension would kick in, albeit with the company paying the government a higher share in profit.
It quoted Mathur as saying: “Our investment plan remains the same, but the extension gives much more certainty to the exploration programme which will fructify into incremental capital expenditure.”
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