 "Seeking to boost investment with upstream reforms")
The Vedanta group’s oil production dropped only four per cent in 2015-16 while its power sales increased 23 per cent.
“The average gross production in 2015-16 was 203,703 boepd (barrels of oil equivalent per day), four per cent lower than FY15 on account of lower production from Rajasthan and offshore assets,” Vedanta informed stock exchanges on Monday. The Rajasthan production declined three per cent owing to reservoir underperformance at Bhagyam.
However, the group said an excellent performance by Mangala enhanced oil recovery (EOR) and contribution from Aishwariya infill programme partly made up for the decline.
“Our Mangala EOR project is on track and producing results as per expectations. Prudent reservoir management practices helped us reduce the impact of natural decline in our offshore assets,” it added.
Gas production from the Raageshwari Deep Gas field in Rajasthan raised to an average rate of 27 million standard cubic feet of gas per day (mscfd) in 2015-16 from 16 mscfd in 2014-15, surpassing the company’s guidance of 25 mscfd for 2015-16.
The company is reviewing the carrying value of its assets and long-term price assumptions in light of the recent weakness in commodity prices, primarily at oil & gas assets.
Owing to the increase in capacity at Talwandi Sabo Power Limited and Bharat Aluminum, the company’s total power sales increased to 12,121 million units in 2015-16 from 9,859 million units in 2014-15. Vedanta’s production of saleable iron ore increased eight times in 2015-16 to 5.2 million tonnes (mt). Production was only 0.6 mt in 2014-15.
The Budget for FY17 had announced the removal of the export duty on low-grade grade iron ore (from 10 per cent earlier). “We are engaged with the respective state governments for enhancing mining cap in Goa and Karnataka,” the company said.
Vedanta’s aluminum production in 2015-16 rose by five per cent to 0.92 mt. Similarly, copper cathode production was up six per cent to 0.38 mt in 2015-16.
