IGI Logo

RJ block extension remains a key monitorable

We attended VOGL’s analyst meet, where management outlined its growth strategy following its demerger from the parent company. Management aims to increase reserves across its basins through ASP-led recovery, tight oil growth, gas exploration, offshore infill drilling, KG basin development, and new exploration opportunities. VOGL is now partnering with global players with deep domain expertise to enhance execution capabilities. The development plan is expected to be performance-incentive linked to drive volume growth. Management expects production of ~100kboe/d in FY27 with capex of ~USD700mn and EBITDA of USD656mn. Over the longer term, management targets to nearly double its production from ~88kboe/d in FY26 to 150kboe/d by FY29, while reducing opex to USD10-13/bbl from USD16.5/bbl in FY26 and increasing EBITDA to USD961mn in FY29 from USD492mn in FY26. According to VOGL, seismic data indicates significant hydrocarbon potential in the Deepwater KG Basin OALP Block 1, with potential production capacity of 180-200kboe/d.

Company Background – Demerged from its parent, Vedanta Ltd, Vedanta Oil & Gas (VOGL) is one of India’s leading private sector oil and gas E&P companies. The company holds interests in 44 blocks (4 PSC, 35 OALP, 4 DSF, 1 CBM) across India, covering >47,000 sq km of acreage, with gross 2P (Proved + Probable) and 2C (Contingent) resources of 2.9bn boe. Its producing assets are located across Rajasthan, Andhra Pradesh, Gujarat, and Assam. VOGL has built a diversified portfolio spanning conventional and unconventional resources. – Demerged from its parent, Vedanta Ltd, Vedanta Oil & Gas (VOGL) is one of India’s leading private sector oil and gas E&P companies. The company holds interests in 44 blocks (4 PSC, 35 OALP, 4 DSF, 1 CBM) across India, covering >47,000 sq km of acreage, with gross 2P (Proved + Probable) and 2C (Contingent) resources of 2.9bn boe. Its producing assets are located across Rajasthan, Andhra Pradesh, Gujarat, and Assam. VOGL has built a diversified portfolio spanning conventional and unconventional resources.

Strong CEO background – Jim Gast (Interim CEO) served as Head – Exploration Geoscience at Cairn since joining in 2025. With over 30 years of global oil and gas experience, he brings expertise across exploration, subsurface development, portfolio strategy, and project governance. Prior to Cairn, Jim spent over three decades with Shell in senior leadership roles across multiple geographies, including operating environments comparable to India’s hydrocarbon basins.

Operating model transformation: As part of the transformation of its exploration and development model, the company plans to adopt an end-to-end outsourcing approach by partnering with globally recognized technical players across seismic, subsurface evaluation, drilling, and field development. The objective is to leverage global expertise while building internal capabilities through knowledge transfer and collaboration, supported by performance-linked incentives to improve efficiency and drive volume growth.

Rajasthan North – Management aims to drive volume growth and arrest production decline through tight oil development and Artificial Surface Pumping (ASP) initiatives. As per the company, ASP is expected to improve recovery in the Mangala field by an incremental 19%, supporting incremental volume growth of 73kboepd between FY27-FY35. Tight oil development has the potential to add 100-200mmboe of reserves, with an incremental volume impact of 32kboepd over FY27-FY35. PSC extension discussions are ongoing, with management expecting an announcement before expiry. The basin is expected to deliver ~55kboepd production at a capex of USD214mn in FY27 and provides long-term production visibility with an expected asset life of 15- 20 years.

Rajasthan South – Management aims to improve volume growth through deep gas exploration and satellite well drilling. Satellite wells are expected to add ~30mmboe of reserves, with an incremental volume increase of 16kboepd between FY27-FY35. The Deep Gas project is expected to contribute ~56kboe/d from FY27-FY35, with potential (2U) resources of 300mmboe compared with current reserves and resources of 278mmboe. The company expects to invest ~USD133mn, supporting expected volumes of 20kboe/d in FY27. Beyond near-term developments, VOGL has identified four additional deep gas prospects yet to be developed, providing further growth potential

Please refer disclaimer at https://www.plindia.com/disclaimer/

SEBI Registration No. INH000000271