Proposed Entry Into 10 Revenue Sharing Contracts with the Government of India

Source Press Release
Company Vedanta Limited 
Tags Licensing Rounds, Deals, Upstream Activities
Date July 03, 2019
BSE Limited  National Stock Exchange of India Limited 
Phiroze Jeejeebhoy Towers  “Exchange Plaza” 
Dalal Street, Fort  Bandra-Kurla Complex, Bandra (East), 
Mumbai - 400 001  Mumbai – 400 051 
Scrip Code: 500295  Scrip Code: VEDL 
Dear Sir,   

Sub: Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2019 (‘Listing Regulations’)

Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached Company's Press release in relation to its proposed entry into 10 revenue sharing contracts with the Government of India.

We request you to kindly take the above information on record.

Thanking you,

Yours faithfully,

For Vedanta Limited

Prerna Halwasiya

Company Secretary & Compliance Officer

Vedanta Limited

Proposed entry into 10 revenue sharing contracts with the Government of India

Vedanta Limited awarded 10 exploration blocks in India pursuant to Open Acreage Licensing Policy

at a total bid cost of US$245 million

Vedanta Limited (the "Company") has been successfully awarded 10 exploration blocks in sedimentary basins throughout India (the "Blocks") pursuant to the Indian Open Acreage Licensing Policy ("OALP") at a total bid cost of US$245 million (the "Transaction"). The OALP is a government-led initiative organised by the Directorate General of Hydrocarbons of the Government of India ("GoI").

The 10 blocks awarded to the Company comprise 7 onshore blocks and 3 offshore blocks. The Company will enter into 10 revenue sharing contracts ("RSCs") with the GoI to effect the Transaction. Following the signing of the RSCs, a licence permitting exploration, development and production operations of all types of hydrocarbons will be granted pursuant to the terms of the relevant RSC in relation to each Block.

The exploration period shall consist of two phases: (i) the Initial Exploration Phase; and (ii) the Subsequent Exploration Phase. In total, the exploration period will be a duration of six years for all Blocks, subject to any extension granted. The development and production period of each contract will be a maximum of 20 years from the date of grant of the petroleum mining lease following discovery of previously unknown deposits of hydrocarbons and approval of the relevant field development plan, subject to any extension granted.

The Group believes that the Transaction complements its existing strategy to focus on production growth. These blocks awarded under OALP bid round II & III, complement the 41 blocks secured in OALP bid round I. The OALP bid rounds provide an opportunity for the Group to acquire new acreages from additional sedimentary basins of India and utilize synergies from the Blocks already secured. The objective of licensing the Blocks is to acquire fresh seismic data and drill exploration wells to establish resources and reserves of oil and/or gas.

The bid cost of US$245 million represents the Company's total committed capital expenditure on the Blocks during the exploration phase and will be met by using the Group's existing cash resources. It is expected that this capital expenditure will occur over a period of approximately three to four years.

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