Vedanta has won two offshore oil and gas blocks in India’s fourth Discovered Small Field (DSF) bidding round, expanding its exploration footprint in the Krishna Godavari (KG) basin. The awards include one shallow-water block (KG/OSDSF/G1/2025) and one deepwater block (KG/DWDSF/GD10/2025), announced at a contract-signing ceremony in New Delhi attended by Petroleum Minister Hardeep Singh Puri. The move aligns with the government’s Samudra Manthan initiative, which aims to accelerate offshore exploration and reduce reliance on imported hydrocarbons.
The blocks were awarded under India’s push to boost domestic oil and gas production. Vedanta, which operates under the Cairn brand, already holds interests in 43 blocks spanning over 44,000 square kilometers across India, with proved and probable reserves of 1.3 billion barrels of oil equivalent. The company has begun deepwater exploration in the KG basin, including 3D controlled-source electromagnetic (CSEM) surveys to assess subsurface potential before drilling.
Vedanta’s interim CEO, Jim Johnny Gast, said the new blocks would strengthen its offshore portfolio and leverage technical expertise to develop the assets.
India’s offshore basins are critical for energy security, with deepwater exploration seen as a key growth area. The DSF round focuses on smaller, discovered fields that can be developed faster than frontier exploration. Vedanta’s existing producing assets cover Rajasthan, Andhra Pradesh, Gujarat, and Assam, but the new offshore blocks mark a shift toward higher-risk, high-reward deepwater reserves.
The company’s deepwater strategy includes risk-reduction surveys before drilling, a common approach in frontier basins. While shallow-water blocks are easier to develop, deepwater fields require advanced technology and higher upfront costs. The Samudra Manthan initiative specifically targets such basins to unlock untapped reserves, though success depends on geological accuracy and operational efficiency.
Vedanta’s reserves include 2P (proved + probable) and 2C (contingent) resources, with the new blocks potentially adding to its offshore inventory. The company’s focus on the KG basin reflects India’s broader strategy to reduce oil imports, though deepwater projects typically take years to yield commercial production.
