Vedanta's Cairn Oil and Gas plans to sign a production-sharing contract (PSC) extension for 10 years with the government for its Barmer field in Rajasthan.
Vedanta sought the court's intervention after its request to the government in 2009 to extend the PSC did not get any response. The government had been extending the PSC from time to time for brief periods since May last year.
According to Vedanta, the delay in PSC extension by the government had prevented it from investing over Rs 30,000 crore in the Barmer field for further exploration, adding that estimated recoverable assets in the Barmer block were around 1.2 billion barrels of oil equivalent, out of which 466 million barrels are expected to be recovered beyond the current PSC period till 2030.
The company is also producing natural gas from the Rajasthan block. On Wednesday, Vedanta told the media it has commenced oil production from its facility in Aishwariya Barmer Hills in Rajasthan.
On Thursday, Vedanta Ltd reported a consolidated profit of Rs 6,432 crore for Q4 FY21 driven by better volume, lower cost of production, and higher commodity prices. The company posted a loss of Rs 12,521 crore in the year-ago period.
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