Poor response to Vedanta's Rajasthan PECs
Vedanta seems to be taking a leaf out of ONGC’s book by offering Production Enhancement Contracts (PECs) at 19 discovered small fields in Rajasthan.
However, only three companies have shown interest in bidding for the PECs at Rajasthan block RJ-ON-90/1. And no medium-sized or large established companies are among them.
On May 10 (2024), Rajasthan-based companies Rahul Petronet and Kiri Group made separate presentations to Vedanta about their work plans in the fields. On May 9 (2024), Gujarat-based Deep Industries made a similar presentation about its chosen fields.
After three extensions, bids were submitted in April 2024. Vedanta is offering 10-year contracts with options to extend.
Five of the 19 fields need production enhancement by drilling more wells: Saraswati Main, Saraswati Basement, Raag Oil, Tukaram and Kaameshwari West-2. Vedanta’s overview reveals that these fields have about 160m barrels of oil equivalent in-place.
These fields produce 3500 to 4000 b/d of oil equivalent. Only 4%" has been recovered so far "due to limited development activities in the past."
Vedanta wants a recovery of 20% to 30% by 2030 or a target production of around 15,000 b/d. Five other fields are in development: Guda, Raag South, Kaameshwari-1, Kaameshwari West-3 and Kaameshwari West-6.
These fields need full field development and enhanced oil recovery. Vedanta wants "immediate production addition through fast-track execution of available drilled wells."
These fields are estimated to hold 82m barrels of oil equivalent in-place. So far, 15 wells have been drilled, with a potential to produce 1500 b/d to 5000 b/d from Kaameshwari, Guda and Raag South.
Vedanta targets 10% oil recovery and 50% gas recovery from these five development phase fields until 2030. Finally, nine new fields need "accelerated" development: Raag Deep North, Basal Thumbli, Saraswati SW-1, Saraswati Crest, Kaameshwari West-8, SL-1, Guda South-7, GSV-2 and GSV-1.
Vedanta believes whoever wins will have the opportunity to begin development quickly." Six fields are discovered where appraisal and development are needed.
Three are "high potential opportunities" with proven hydrocarbons but well testing, appraisal and development plans are called for. These nine fields hold an estimated 480m barrels of oil equivalent in-place.