Vedanta To Invest ₹2,000 Crore In Rajasthan Oil Fields In FY27
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Vedanta Oil and Gas plans to invest around ₹2,000 crore in FY27 across its Rajasthan fields to improve recovery and raise crude production from existing wells.
Vedanta Oil and Gas (VOGL) plans to invest around US$200 million, or about ₹2,000 crore, in FY27 across its Mangla, Bhagyam and Aishwariya fields in Rajasthan as it looks to improve crude recovery from existing wells.
The company is focusing on enhanced-recovery measures to counter natural reservoir decline. The immediate focus is the Mangla field, where production is currently around 80,000 barrels per day (bpd).
At the close of trading on 1 October, the Vedanta Oil and Gas share price was ₹31.98 on the NSE, down 3.41% from the previous close.
Why Is Vedanta Investing In Rajasthan Oil Fields?
Vedanta’s producing fields are facing natural production declines of around 1–3%. The company is therefore looking to extract more crude from its existing assets rather than relying only on new discoveries.
Rajasthan remains VOGL’s largest producing asset, contributing 81% of its total production in the first quarter of the current financial year. The company is targeting production of more than 150,000 bpd from Mangla.
How Is Vedanta Improving Recovery At Mangla?
The company is expanding enhanced oil recovery at Mangla using polymer flooding, well interventions and other enhanced-recovery measures. Recovery from producing wells has reached 41%, while Vedanta is targeting a recovery rate of 60%.
Mangla, discovered in 2004, helped turn Barmer into India’s biggest onshore oil-producing region. Vedanta is now using additional recovery techniques to extend production from the mature field.
Vedanta Oil and Gas recorded average gross operated production of 77.7 thousand barrels of oil equivalent per day (kboepd) in Q1, down 17% from 93.2 kboepd a year earlier.
Alongside the Rajasthan investment, the company is also developing the northeast as a new hub for gas growth.
Also Read - Adani Group’s Maharashtra Investment Plan Crosses ₹6 Lakh Crore
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
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