Vedanta Oil & Gas Plans $5 Billion Capex for Exploration

Vedanta's newly demerged Oil & Gas business has outlined an ambitious investment roadmap centred on expanding exploration activities over the next 3 years.  

Group chairman Anil Aggarwal told Moneycontrol that the company intends to undertake a $5 billion capital expenditure programme while leveraging its debt-free balance sheet and earnings capacity. 

Major Exploration Push Planned 

The planned investment will cover both offshore and onshore drilling projects and is expected to be financed through a mix of internally generated funds and borrowings.  

Emphasising the company's financial flexibility, Aggarwal said, “$5 billion should not be any hindrance to put into oil and gas through internal resources and some debt we can take because there is no debt.” 

He also highlighted that the business generates around $1 billion in annual EBITDA, adding that access to equipment, technology and financing should support the execution of the exploration programme. 

Demerger Marks a New Phase 

The announcement coincided with the stock market debut of Vedanta's 4 demerged businesses on June 15, 2026, namely Vedanta Aluminium Metal Ltd., Vedanta Oil & Gas Ltd., Vedanta Power Ltd. and Vedanta Iron & Steel Ltd. 

Aggarwal expressed optimism about their long-term growth prospects and said he expects each of the demerged companies to eventually achieve a market capitalisation of $100 billion. 

Focus On Expanding Production 

The company is aiming to increase output over the next 3 years despite natural production declines in its Barmer oil fields. The planned drilling programme is intended to strengthen production capacity across its portfolio. 

In FY26, however, Vedanta Oil & Gas reported weaker operating performance. Average daily gross operated production declined 16%, while revenue fell 13% year on year to ₹9,582 crore. EBITDA also decreased 7% year on year to ₹4,664 crore. 

Read More: Vedanta Aluminium Shares Debuts at ₹522 Post-Demerger; Combined Value of 5 Entities Surpasses ₹930 Per Share! 

Vedanta Oil & Gas Share Price Performance  

As of 16 June 2026, at 2:28 PM, Vedanta Oil & Gas share price is locked at a lower circuit limit of ₹34.30 per share, reflecting a decline of 4.99% from the previous closing price.  

Conclusion 

Vedanta Oil & Gas is preparing to invest $5 billion in exploration over the next 3 years, with the company planning to utilise its debt-free position and financial resources to support future expansion. 

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