VEDANTA RESOURCES Tel: +44 (0) 20 7499 5900
Fax: +44 (0) 20 7491 8440
www.vedantaresources.com
10 October 2017
Production Release for the Second Quarter and Half Year ended 30th September 2017 Q2 Highlights OperationsZinc India:
Refined zinc-lead metal production at 230kt, up 27% y-o-y
Record refined silver production at 4.5mn ounces, up 31% y-o-y Zinc International:
Highest quarterly production of 20kt at Black Mountain in the last 4 years Oil & Gas:
Commenced 15-well infill drilling campaign at Mangala; first well brought online
Aluminium:
Record quarterly aluminium production
Smelters continue ramp up, with current run-rate of 1.6 mtpa (excluding trial run production)
Copper India:
Record quarterly copper cathode production Copper Zambia:
Mined metal production up 21% q-o-q, with continued production improvements at Konkola Underground, Tailings Leach Plant and Nchanga open pit
Iron Ore:
Produced 1.9mt at Karnataka in H1, expect to achieve full allocation production during Q3
TSPL:
High plant availability of 87%, following the shutdown in Q1
CorporateProactive refinancing of $1.84 bn completed at Vedanta Resources Plc through a combination of bond and bank debt; extends average debt maturity by 1.5 years, lowers the average cost of borrowing and results in no significant debt maturities until December 2018
Kuldip Kaura, Interim Chief Executive Officer, Vedanta Resources plc, said: "I feel privileged to take on the helm of a business with Tier 1 assets and I am very excited to be here. During the quarter, our Zinc, Copper India and Aluminium businesses have delivered a strong production performance. We have also commenced our growth journey on both the exploration and development front in our Oil & Gas business. We are continuing to realise operational efficiencies across our diversified portfolio and to benefit from a supportive market environment."
Oil & GasQ2 | Q1 | H1 | ||||||
Particulars | FY2018 | FY2017 | % change YoY | FY2018 | % change QoQ | FY2018 | FY2017 | % change YoY |
OIL AND GAS | ||||||||
Average Daily Total Gross Operated Production (boepd) 1 | 190,389 | 206,230 | (8)% | 196,656 | (3)% | 193,505 | 206,342 | (6)% |
Average Daily Gross Operated Production (boepd) | 180,955 | 196,399 | (8)% | 187,203 | (3)% | 184,062 | 196,629 | (6)% |
Rajasthan | 153,238 | 167,699 | (9)% | 159,351 | (4)% | 156,278 | 167,323 | (7)% |
Ravva | 17,266 | 18,823 | (8)% | 18,361 | (6)% | 17,810 | 19,228 | (7)% |
Cambay | 10,452 | 9,877 | 6% | 9,491 | 10% | 9,974 | 10,078 | (1)% |
Average Daily Working Interest Production (boepd) | 115,332 | 125,575 | (8)% | 119,473 | (3)% | 117,391 | 125,484 | (6)% |
Rajasthan | 107,267 | 117,390 | (9)% | 111,546 | (4)% | 109,395 | 117,126 | (7)% |
Ravva | 3,885 | 4,235 | (8)% | 4,131 | (6)% | 4,007 | 4,326 | (7)% |
Cambay | 4,181 | 3,951 | 6% | 3,796 | 10% | 3,990 | 4,031 | (1)% |
Total Oil and Gas (million boe) | ||||||||
Oil & Gas- Gross | 16.6 | 18.1 | (8)% | 17.0 | (2)% | 33.7 | 36.0 | (6)% |
Oil & Gas-Working Interest | 10.6 | 11.6 | (8)% | 10.9 | (2)% | 21.5 | 23.0 | (6)% |
Average gross production during Q2 FY2018 was 180,955 barrels of oil equivalent per day (boepd), 3% lower q-o-q and 8% lower y-o-y on account of natural decline in producing reservoirs, partially offset by continued reservoir management practices, strong Enhanced Oil Recovery (EOR) performance and production optimization activities.
Gross production from the Rajasthan block averaged 153,238 boepd for the quarter, 4% lower q-o-q primarily due to natural decline and temporary shutdown of satellite fields owing to operational issues. These satellite fields are being brought online in a phased manner. Gross production from Development Area-1 (DA-1), Development Area-2 (DA-2) and Development Area-3 (DA-3) averaged 137,562 boepd, 15,606 boepd and 70 boepd, respectively
Gas production from Raageshwari Deep Gas (RDG) averaged 33.8 million standard cubic feet per day (mmscfd) in Q2 FY2018, with gas sales, post captive consumption, at
18.0 mmscfd (production of 35.4 mmscfd and sales of 20.4 mmscfd in Q1).
The Ravva block produced at an average rate of 17,266 boepd for the quarter. Closing of the water producing zones in two wells and gas lift optimization has helped in enhancing production rates from the field, partially offsetting the natural decline.
The Cambay block produced at an average rate of 10,452 boepd for the quarter. Targeting incremental production opportunities, a gas well has been re-activated and gas lift started in two wells which has helped offset the natural decline.
Drilling of 15 infill wells at the Mangala field has commenced during Q2 and the first well was brought online at the end of September. Aishwariya Barmer Hill (ABH) Phase- I has been approved and the production from existing wells has commenced during the quarter. Additional growth projects like Bhagyam EOR, Aishwariya EOR, ABH Phase- II, Liquid handling upgrade and the field development plan for 45 additional infill wells at Mangala are under advanced stages of discussion with our JV partner for approval.
Post completion of RDG Phase-I in November 2017, gas production is expected to increase to 40-45 mmscfd. Tendering activity for partnership with leading service providers for integrated delivery of RDG Phase-II is progressing well and is expected to increase the gas production to over 100 mmscfd, and condensate production to over 5 kboepd by H1 CY2019.
H1 FY2018 vs. H1 FY2017Average gross production across our assets was at 184,062 boepd. Production from Rajasthan was 156,278 boepd, 7% lower y-o-y on account of natural decline in the producing reservoirs, partially offset by positive results from the Mangala EOR and other reservoir management practices. RDG gas production has increased from an average of 30.4 mmscfd in H1 FY2017 to 34.6 mmscfd in H1 FY2018. Production from the offshore assets, Ravva and Cambay, was at a combined 27,784 boepd, lower by c.5% y-o-y, due to natural decline.
Zinc IndiaParticulars (In '000 tonnes, or as stated) | Q2 | Q1 | H1 | |||||
FY2018 | FY2017 | % change YoY | FY2018 | % change QoQ | FY2018 | FY2017 | % change YoY | |
Zinc India(kt) | ||||||||
Mined metal content | 219 | 192 | 14% | 233 | (6)% | 452 | 318 | 42% |
Refined Zinc - Total | 192 | 150 | 28% | 194 | (1)% | 386 | 252 | 53% |
Refined Zinc - Integrated | 192 | 149 | 29% | 194 | (1)% | 386 | 250 | 54% |
Refined Zinc - Custom | - | 1 | - | - | - | - | 2 | - |
Refined Lead - Total 2 | 38 | 31 | 24% | 35 | 9% | 73 | 55 | 32% |
Refined Lead - Integrated | 38 | 31 | 24% | 35 | 9% | 73 | 55 | 32% |
Refined Lead - Custom | - | - | - | - | ||||
Silver - Total (in mn ounces) 3 | 4.5 | 3.5 | 31% | 3.7 | 22% | 8.2 | 6.3 | 30% |
Silver- Integrated (in mn ounces) | 4.5 | 3.5 | 31% | 3.7 | 22% | 8.2 | 6.3 | 30% |
Silver- Custom (in mn ounces) | - | - | - | - | - | - | - | - |
Mined metal production was at 219,000 tonnes, 14% higher y-o-y, on account of higher volumes from underground mines. Q-o-Q production declined by 6% due to lower ore treatment.
Integrated zinc metal production was 192,000 tonnes, 29% higher y-o-y and flat sequentially. Integrated lead metal production was 38,000 tonnes, 24% higher y-o-y and 9% higher q-o-q. This was in line with availability of mined metal and smelters.
Integrated silver production was at a record high of 4.5 mn ounces, up 31% y-o-y and 22% q-o-q in line with higher lead production.
Capital mine development of 9,765 meters was achieved across all mines during the quarter, up 77% y-o-y and 11% sequentially. Rampura Agucha underground mine development is progressing well and the main production shaft is on track for commissioning in Q3 FY 2019. Shaft project at Sindesar Khurd is also on track for commissioning in Q2 FY 2019 while construction work for a new third mill of 1.5 mtpa capacity commenced during the quarter. Zawar mill debottlenecking was completed and the upgraded capacity of 2.7 mtpa was commissioned during the quarter.
H1 FY2018 vs. H1 FY2017Mined metal production was at 452,000 tonnes in H1 FY2018, 42% higher y-o-y driven by higher ore production across all mines.
Integrated zinc, lead and silver production were higher by 54% y-o-y, 32% y-o-y and 30% y-o-y respectively, in line with availability of mined metal.
Zinc InternationalParticulars (In '000 tonnes, or as stated) | Q2 | Q1 | H1 | |||||
FY2018 | FY2017 | % change YoY | FY2018 | % change QoQ | FY2018 | FY2017 | % change YoY | |
Zinc International | 42 | 39 | 13% | 32 | 33% | 74 | 82 | (9)% |
Zinc refined - Skorpion | 23 | 23 | 0% | 14 | 66% | 36 | 47 | (22)% |
Mined metal content - BMM | 20 | 16 | 23% | 18 | 8% | 38 | 35 | 8% |
Total production increased to 42,000 tonnes, 33% higher q-o-q and 13% y-o-y. Skorpion production increased to 23,000 tonnes, 66% higher q-o-q. This is on the back of a successful planned refinery shut down in Q1 which has resulted in restoring the acid plant to full capacity. BMM production increased to 20,000 tonnes, 8% higher q-o-q and 23% y-o-y. The increase was on account of better grades from improved drilling accuracy and higher recoveries due to operational efficiencies.
Vedanta Resources plc published this content on 10 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 10 October 2017 07:24:01 UTC.
Original documenthttp://www.vedantaresources.com/media/220272/vedanta_resources_q2_fy18_production_release._vf.pdf
Public permalinkhttp://www.publicnow.com/view/28D51E5122A99B6283577AA26372845245F31FFD
