Oil India to Undertake Exploratory Drilling at Hydrocarbon Block in Rajasthan

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Researched by Industrial Info Resources India (Delhi, India)--State-owned Oil India Limited (BSE:533106) (Noida, Uttar Pradesh) is set to drill 11 exploratory wells at the RJ-ONN-2005/2 block in Rajasthan. The hydrocarbon block, located in the Jaisalmer District of Rajasthan, was awarded to Oil India by the Directorate General of Hydrocarbons (DGH) (New Delhi) in the seventh round of bidding, under the country's New Exploration Licensing Policy (NELP). The block has an area of 1,517 kilometers.

The exploration project involves the water-based mud-drilling of 11 wells in the Thar Desert to a depth of between 1,100 to 2,100 meters. The company signed a production-sharing contract (PSC) for the block on December 22, 2008, while the petroleum exploration license (PEL) was issued in July 2009.

The seventh round of bidding under "NELP-VII" was initiated in February 2007. A total of 57 blocks were offered in this round. Out of these, nine blocks are shallow water, 19 are deepwater offshore, and the remaining 29 are on-land blocks.

Oil India already has acquired environmental clearance for the drilling work from the Ministry of Environment and Forests (MoEF) (New Delhi). The terms of references (ToRs) for environment impact assessment (EIA) were issued in March 2011. According to Oil India, the exploratory work would involve site preparation, well foundation, rig building, drilling, and the restoration of the well site. The total water requirement for the project has been pegged at 50 cubic meters per day, per well. The project is likely to generate 12.5 cubic meters of effluents for each day of drilling. The power requirement for the exploration project will be met through diesel generator sets. The project is estimated to entail an investment of $18.25 million.

Oil India is a wholly owned enterprise of the government of India engaged in the exploration, development and production of crude oil and natural gas, as well as the transportation of crude oil and production of liquefied petroleum gas (LPG). Oil India currently owns and operates 13 drilling rigs and 14 work-over rigs. The company has so far drilled more than 1,000 wells, covering more than 3.5 million meters and varying in depth from 1,000 to 5,000 meters, in various surface and sub-surface environments.

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