Vedanta Oil and Gas Q1FY27 gross operated production falls 17% YoY
Vedanta Oil and Gas Limited reported a 17% YoY decline in average daily gross operated production to 77.7 kboepd for Q1FY27, with total output falling to 7.1 million boe. The company is focusing on arresting base decline through exploration and recovery campaigns. The Cambay block production remains subject to ongoing litigation regarding its Production Sharing Contract extension.
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Vedanta Oil and Gas Limited reported an average daily gross operated production of 77.7 kboepd for the first quarter ended June 30, 2026, representing a decline of 17% compared to the corresponding period in the previous fiscal year. The total oil and gas production on a gross basis stood at 7.1 million boe for the quarter, down from 8.5 million boe in the same period last year. The company, which operates under the brand 'Cairn', is focusing on arresting base decline and building a future growth funnel through exploration drilling, enhanced oil recovery, and infill campaigns. Vedanta Oil and Gas Limited became effective on May 1, 2026, formerly known as Malco Energy Limited.
The production data was submitted to BSE Limited pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The operational performance is presented for the full quarter of the business constituents of Vedanta Oil and Gas Limited as they exist at the end of the first quarter of FY2027 to ensure a meaningful like-for-like comparison with historical performance.
Production Metrics
The Rajasthan asset reported an average daily gross operated production of 63.1 kboepd, a decrease of 15% year-on-year. Production from the Ravva field stood at 7.0 kboepd, down 17% from the previous year. The Cambay block saw a significant year-on-year decline of 32%, with production dropping to 4.6 kboepd; however, it recorded a notable sequential recovery of 21% compared to the previous quarter. Output from the Open Acreage Licensing Policy (OALP) blocks was 3.1 kboepd, a 12% decrease compared to the same quarter in the previous fiscal year. The following table presents a detailed breakdown of production performance across all assets:
| Particulars (In kboepd) | 1Q FY2027 | 1Q FY2026 | % Change | 4Q FY2026 | % Change |
|---|---|---|---|---|---|
| Average Daily Gross Operated Production | 77.7 | 93.2 | (17%) | 81.5 | (5%) |
| Rajasthan | 63.1 | 74.6 | (15%) | 67.1 | (6%) |
| Ravva | 7.0 | 8.4 | (17%) | 7.4 | (6%) |
| Cambay | 4.6 | 6.8 | (32%) | 3.8 | 21% |
| OALP | 3.1 | 3.5 | (12%) | 3.1 | (3%) |
| Average Daily Working Interest Production | 51.1 | 60.8 | (16%) | 53.9 | (5%) |
| Rajasthan | 44.2 | 52.2 | (15%) | 47.0 | (6%) |
| Ravva | 1.6 | 1.9 | (17%) | 1.7 | (6%) |
| Cambay | 1.8 | 2.7 | (32%) | 1.5 | 21% |
| KG-ONN 2003/1 | 0.5 | 0.5 | (0%) | 0.5 | (3%) |
| OALP | 3.1 | 3.5 | (12%) | 3.1 | (3%) |
Legal and Operational Updates
The Cambay block production figures are subject to the outcome of ongoing litigation. On September 19, 2025, the Ministry of Petroleum and Natural Gas informed the contractors of the block — a three-party Joint Venture including Vedanta as Operator — that their application for Production Sharing Contract extension had not been accepted. Vedanta has challenged this rejection before the Delhi High Court. The Hon'ble Delhi High Court, vide its order dated January 6, 2026, directed the parties to maintain status quo, and Vedanta continues to operate the block. The average production per day for the Cambay block factors volume until June 30, 2026.
Vedanta Oil and Gas Limited holds interests in 44 blocks spanning over 47,000 sqkm of acreage across India, with gross 2P and 2C resources of 1.4 bnboe. The company's producing assets span key hydrocarbon basins in Rajasthan, Andhra Pradesh, Gujarat, and Assam. The company is committed to achieving Net Zero and advancing responsible energy development while creating sustainable value for the nation, communities, and shareholders.
What is the expected timeline for the Delhi High Court's ruling on the Cambay block litigation, and how might a negative outcome impact the company's overall production targets?
How will the company's capital expenditure strategy shift in the coming quarters to balance the immediate need to arrest base decline with long-term exploration efforts?
Given the 32% year-on-year decline in the Cambay block, what specific enhanced oil recovery techniques are being prioritized to sustain operations pending the legal resolution?
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