Vedanta finds oil in Krishna Godavari basin

Further appraisals required, says firm

A man walks past the Vedanta office building in Mumbai August 16, 2010. India-focused miner Vedanta Resources said it will acquire 51-60 percent of Cairn India for about $8.5-9.6 billion in cash to be funded via debt and cash resources, a move that would represent Vedanta's first foray into oil and gas, and help Edinburgh-based Cairn Energy fund an expensive drilling programme in Greenland. REUTERS/Danish Siddiqui (INDIA - Tags: BUSINESS ENERGY)

Anil Agarwal-led Vedanta Limited has discovered oil in the Krishna Godavari basin on India’s east coast.

The company has notified the management committee, Directorate General of Hydrocarbons and Ministry of Petroleum and Natural Gas of an oil discovery in the second exploratory well H2, located in block KG-OSN- 2009/3 , Krishna-Godavari Basin, east coast of India, said the company in a statement.

Vedanta Limited holds 100% participating interest in the block.

“Multiple reservoir zones were encountered in the well H2 within the Mesozoic sequence between the depths of 3310 m to 4026 m with hydrocarbon indications during drilling and down hole logging. The zone from 3403 m to 3431 m was tested through conventional well testing (drill stem test) and flowed oil to surface,” said the statement.

Further appraisal will be required to establish the size and commerciality of the oil discovery. The first exploration well, A3-2, drilled in the block was a gas discovery.

“Evaluations are ongoing based on the results of the first well A3-2 and the second well H2 to finalise the

forward programme,” the statement added.

Vedanta shares on BSE closed up 1.12% at ₹ 175.55 in a weak Mumbai market on Wednesday

Published - March 27, 2019 10:24 pm IST