The contract will now be valid until 2029. The extension will enable the Joint Venture partners to recover about 13 million barrels of oil equivalent, Vedanta said in a statement. In addition, the joint venture partners will invest Rs 550 crore to drill seven wells targeting additional reserves of 11.7 million barrels of oil equivalent, it said.
Vedanta owns 22.5% participating interest in the field. The remaining stakes are held by ONGC (40%), Videocon Petroleum (25%) and RavvaOil (12.5%).
“Our endeavour is to make Ravva a global case study for enhanced recovery in an ageing oil field”, said Ajay Kumar Dixit, the chief executive of Vedanta’s oil and gas business.
Vedanta’s prolific Barmer block in Rajasthan contributes nearly a quarter of India’s crude oil production.