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Pre-Feasibility Report

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PRE-FEASIBILITY REPORT CHAPTER - 1 EXECUTIVE SUMMARY Project Identification and The Kharsang Oil Field (KOF) is located in the state of Arunachal Pradesh, Background about 50 Km east of Digboi Refinery and is part of the Assam-Arakan Basin. The field was discovered in 1975 by M/s Oil India Ltd. (OIL) and was put into regular production in 1983. In 1995, Government of India awarded the Kharsang Field to a Consortium comprising of the following partners under a 25 years Production Sharing Contract (PSC) dated 16th June, 1995, Oil India Limited (40%) Geopetrol International Inc (25%) Jubilant Energy Pvt. Ltd. (25%) GeoEnpro Petroleum Ltd. (10%) GeoEnpro was designated as the Operator of the KOF. Petroleum Mining Lease (PML) was executed between Government of Arunachal Pradesh (GoAP) & JV Consortium on 21.10.1997 effective from 16.06.1995 for a period of 20 years (extension of the same has already been applied and currently under process). KOF has a total Mining Lease area of 11 Sq.Km. MOEF vide letter no. F.No. J-11011 /389/2006-IA II (I), dated November 15, 2007 granted the EC for drilling of 40 wells. After obtaining the EC in 2007, the consortium has drilled 29 development wells till date, under different drilling phases, at the Kharsang Oil Field out of the 40 wells for which EC was granted. At present, total well count at Kharsang Oil Field is 70 wells and present crude oil production is around 1500 BOPD and gas production of around 50,000 m3/day. Brief Description of the To further augment the oil and gas production from the field and test the Project deeper prospects, Tipam and Barail, GeoEnpro plan to carry out the below activities, Development Well Drilling: To drill additional 40 Development wells, in a phased manner, within the KOF over the coming years so as to further increase the field oil and gas productivity. Exploratory / Appraisal Well Drilling: To drill 5 Exploratory / Appraisal wells to target deeper prospects within the KOF. Upon successful discovery and establishing commercial viability in deeper prospects production operations shall be carried out in these wells. S.No. Parameters Description Total well count at KOF is 70 wells and present production rate of oil and gas 1. Existing capacity is around 1500 BOPD and 50,000 m3/day respectively. 2. Area KOF has a total Mining Lease Area of 11 Sq.Km. 3. Location KOF is located in Changlang District of Arunachal Pradesh having below co- ordinates, Point Latitude Longitude A 27° 24' 31" 96° 01' 13" B 27° 24' 31" 96° 03' 22" C 27° 23' 01" 96° 03' 22" D 27° 23' 01" 96° 01' 13" 4 Need of Project With the proposed activities at KOF, present crude oil production is expected to enhance substantially which would contribute to the domestic oil production and help in reducing the import dependency of India for crude oil to meet the growing energy demand 5 Water Water from the nearby river will be drawn during drilling activities. Estimated Requirement & quantity shall be around 50 M3/day. source 6 Waste Generation Presently, waste generated from the KOF is mainly in the form of formation & Treatment water and minor sludge. An Effluent Treatment Plant (ETP) with treating capacity of 200 KLPD for treatment of formation water is already operational in KOF to achieve permissible limit for disposal as per State Pollution Control Board norms. The oil sludge is collected in a concrete sludge storage facility at a centralized location and is disposed of to an authorized and licensed recycler. 7 Power Supply and Power requirement would be met from the existing Power House at KOF. At Source present, KOF is equipped with 3 gas fired gensets (1 x 450 KVA and 2 x 180 KVA) and one diesel fired genset (1 x 170 KVA) to meet the power requirement at site. 8 Site Connectivity KOF is well connected with all means of transportation. Nearest Railway Station is Ledo (around 40 Km); nearest airport is Dibrugarh (around 120 Km) and NH-38 at around 15-20 Km 9 Existing Existing Infrastructure at KOF includes, OCS, CTTF, Effluent Treatment Plant Infrastructure (ETP), Power House, Occupational Health Centre (OHC), Fire Station, Housing Complex for staff / employees 10 Alternative Site No alternate site is considered as operations are proposed to be carried out within the KOF. 11 Raw Material For carrying out the proposed activities, drilling related services like charter Required hired drilling rig, cementing, logging services etc. would be required for which respective contractor companies would be engaged. 12 Land Form, Land Out of the total Mining Lease area of 1100 hectares, around 136 hectares of Use and Land land has already been diversified. Some of the proposed wells shall be drilled Ownership from the already diversified area (136 Hectares) within the KOF Mining lease area. An application for Diversion of Forest land (94.712 Hectares), for non-forest purposes, for drilling of new/additional wells within the Kharsang Mining Lease Area for seeking diversion of forest land under the Forest Conservation Act, 1980 has been submitted on May 26, 2014 and presently, is under examination. 13 Financial and Social Additional production of crude oil will not only save the foreign exchange but Benefit also benefit the State Government with enhanced royalty payment and Central Government with increased Cess payment. CSR activities would be carried out by the company for betterment of the local people of the region. 14 Conclusion GeoEnpro proposes to carry out drilling of 40 Development and 5 Exploratory / Appraisal wells at Kharsang Oil Field to augment the oil and gas production from the field. Increased production of oil and gas will not only help the country in securing the energy demand but also will generate direct and in- direct opportunities for the locals and help in economic up-liftment of the local people of the region. The company will adopt all the measures through pollution control equipment, Environment management plan & Disaster Management Plan to prevent harm and damage to environment with the expansion / enhanced production from the field. CHAPTER - 2 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION 2.1 Identification of project and project proponent The Kharsang Oil Field (KOF) is located in the state of Arunachal Pradesh, about 50 Km east of Digboi Refinery and is part of the Assam-Arakan Basin. The field was discovered in 1975 by M/s Oil India Ltd. (OIL) and was put into regular production in 1983. Oil India drilled a total of 36 wells till 1995 and the total production was around 265 Barrels of Oil per day (BOPD) as of 1995. In 1995, for further development of the field, Government of India (GOI) awarded the Kharsang Oil Field to a Consortium comprising of the following partners under a Production Sharing Contract (PSC) dated 16th June, 1995, Consortium Members Participating Interest (PI) • GeoEnpro Petroleum Limited (Operator) 10% • Enpro India Limited (Presently Jubilant Energy) 25% • Geopetrol International Inc. & 25% • Oil India Limited 40% The GOI entered into twenty-five years PSC with the consortium, with an extension provision of further 10 years. GeoEnpro was designated as the Operator of the Kharsang Oil Field. KOF has a total Mining Lease area of 11 Sq.Km. and is rectangular in shape admeasuring nearly 3.8 Km in E- W direction and 2.9 Km in N-S direction. Petroleum Mining Lease (PML) was executed between Government of Arunachal Pradesh (GoAP) & JV Consortium on 21.10.1997 effective from 16.06.1995 for a period of 20 years. As part of its offer to further develop and enhance the production from the Field, the consortium had agreed to drill additional development wells. In 1996, GeoEnpro had engaged National Environmental Engineering Research Institute (NEERI) to carry out Environmental Impact Assessment (EIA) study for carrying out work-over operations in the existing 36 wells and for drilling of 10 new development wells for enhancing oil and gas production from the KOF. The same was submitted to Government of Arunachal Pradesh (GoAP) for obtaining No Objection Certificate (NOC). Arunachal Pradesh State Pollution Control Board (APSPCB) after conducting the public hearing granted the No Objection Certificate (NOC) vide letter no. FOR.141/CONS/91/P-II dated 09/11/1998. Subsequently, the consortium applied for Environmental Clearance (EC) on March 15, 1999 to MOEF for carrying out the drilling of 5 development wells and workover operations. MOEF vide its letter dated September 15, 1999, informed the consortium that considering that the total cost of the project is less than threshold limit (Rs. 50 Crore), the proposed drilling operations and work over activity project does not fall under preview of EIA notification and hence the Environmental Clearance is not required under EIA notification of 1994. Accordingly, GeoEnpro drilled 5 development wells during the period February 2005 to December 2005. To further augment the oil and gas production from the field, the consortium had applied for Environmental Clearance (EC), as per EIA Notification 2006, on November 01, 2006 to MOEF for carrying out drilling of 40 development wells. MOEF vide letter no. F.No. J-11011 /389/2006-IA II (I), dated November 15, 2007 granted the EC for drilling of 40 wells. After obtaining the EC in 2007, the consortium has drilled 29 development wells till date, under different drilling phases, at the Kharsang Oil Field out of the 40 wells for which EC was granted. At present, total well count at Kharsang Oil Field is 70 wells and present crude oil production is around 1500 BOPD. The quantity of crude oil produced from the field is dispatched to Digboi refinery of Indian Oil Corporation Ltd.
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