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. by road tankers / bowsers. Along with the crude oil, around 70-80 KL/day of formation water and around 50,000 m3/day of gas is being produced from the field. Associated gas so produced along with the crude oil from the field is used for meeting power and steam as well as domestic fuel requirement at camp facilities and some unused gas quantity is being flared. Produced formation water is treated in the existing Effluent Treatment Plant (ETP), with treating capacity of 200 KLPD, to achieve permissible limit for disposal as per State Pollution Control Board norms.

The Kharsang Field covers partly hilly jungle region at an elevation of approximately 200 m above sea level. Hydrocarbon accumulation has been found in Namsang, Girujan, Tipam and Barail Formation in the upper Assam sedimentary basin.

GeoEnpro Petroleum Limited

GeoEnpro Petroleum Limited (GEPL) is an Indian registered company and is a 50-50 joint venture between Jubilant Enpro Limited and Geopetrol Mauritius Ltd. Jubilant Enpro is rapidly growing company involved in, among other activities, oil and gas exploration and production. Geopetrol is an oil and gas Exploration and Production (E&P) company with operations in France, Vietnam, and India. GEPL was established in early 1995 to carry out oil and gas E&P business in India, when the Government of India (GOI) decided to invite private participation in oil and gas E&P business for infusing foreign technology and private investment. GEPL became one of the first private companies to enter into a PSC, along with other consortium partners, on June 16, 1995 with GOI for expansion of oil and gas activities at KOF in Arunachal Pradesh. At present, GEPL is active only at KOF project with Head Office at Noida and a full-fledged camp office at KOF operational area.

2.2 Brief Description of the nature of project

To further augment the oil and gas production from the field and test the deeper prospects, Tipam and Barail, GeoEnpro plan to carry out the below activities,

 Development Well Drilling: GeoEnpro plan 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. Significant hydrocarbon reserves are anticipated with the drilling of these wells. Existing production facilities at KOF are adequate to accommodate the expected increase in production from the drilling of these new wells.

 Exploratory / Appraisal Well Drilling: GeoEnpro plan 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.

2.3 Need for the project and its importance to the country and or region

India is a crude oil deficit country and to meet its growing energy demand, around 75%-80% of crude oil is being imported from oil rich countries. With the drilling of proposed development wells at KOF, present crude oil production is expected to enhance substantially which would contribute in attaining the energy security for the nation and help in reducing the import dependency of India for crude oil to meet the growing energy demand.

The increased production would generate additional revenue for the State Government as well as the Central Government by way of payments on account of royalty, cess, taxation and profit petroleum. This will also assist in the economic development of this less developed area of Arunachal Pradesh by means of generating direct and indirect employment opportunities for the local people of the region.

2.4 Demand-Supply Gap

India was the fourth-largest consumer and fourth-largest net importer of crude oil and petroleum products in the world in 2013, after the United States, China, and Japan. The country depends heavily on imported crude oil, mostly from the Middle East.

The gap between India’s oil demand and supply is widening, as demand reached nearly 3.7 million barrels per day (bbl/d) in 2013 compared to less than 1 million bbl/d of total liquids production. The Energy Information Administration (EIA) projects India’s demand will more than double to 8.2 million bbl/d by 2040, while domestic production will remain relatively flat, hovering around 1 million bbl/d.

2.5 Import vs. Indigenous production

India’s impetus is on to increase the indigenous production of oil and gas so as to meet the growing demand of the country. We are presently importing around 75%-80% of our crude oil requirement, which results in heafty import bills. Increase in domestic production of crude oil will surely help in securing our energy demand and also, it would save on the huge import bills.

2.6 Export Possibility

India is an energy deficit country, as such all indigenous oil and gas production is consumed domestically. Crude Oil production from Kharsang Oil Field is being sent to IOCL refinery at Digboi.

2.7 Domestic / Export Market

At present, crude oil being produced at Kharsang Oil Field is being sent to IOCL refinery at Digboi and after completion of the proposed drilling activities, the enhanced crude oil production would also be sent to IOCL refinery, Digboi.

2.8 Employment Generation (Direct and Indirect) due to the project

Proposed activities shall assist in the economic development of this less developed area of Arunachal Pradesh and will help in generating direct and indirect employment opportunities for the local people of the region.

CHAPTER - 3 PROJECT DESCRIPTION 3.0 Type of the Project To augment the oil and gas production from the Kharsang Oil Field, GeoEnpro Petroleum Limited (GEPL) is proposing to carry out below activities,

 Development Well Drilling: To drill additional 40 Development wells, in a phased manner, within the KOF.

 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.

The proposed activities are planned to be carried out in phases commencing from FY 2014- 15 onwards. The project cost is estimated to be around 720 Crores to be incurred in different phases over the execution schedule of the above activities.

3.1 Location with Co-ordinates

Kharsang Oil Field (KOF) is located in the Changlang District, Arunachal Pradesh. The total lease area of KOF is 11 Sq.Km. but the present operations are largely restricted in essentially northern central area. KOF is rectangular mining lease area and bounded as follows,

On the North by Points ‘A’ and ‘B’ On the South by Points ‘C’ and ‘D’ On the East by Points ‘B’ and ‘C’ On the West by Points ‘A’ and ‘D’

Whereas the coordinates of Points A, B, C & D are as follow: 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"

KOF has a length in east-west direction of nearly 3.8 Km and a width in north-south direction of nearly 2.8 Km. KOF can be easily approached by road from Dibrugarh in Assam and is located at a distance of nearly 120 Km from Dibrugarh.

Location map showing general location of the Kharsang Oil Field along with project boundary, project site layout with co-ordinates is as below,

Kharsang Oil Field: Location Map 3.2 Details of alternate sites considered No alternate site is considered as operations are proposed to be carried out within the existing Kharsang Oil Field area.

3.3 Size or magnitude of operation

It is proposed to drill 40 development and 5 exploratory/appraisal wells within the Kharsang Oil Field to enhance the oil and gas production.

3.4 Process Description

Flow diagram showcasing the steps involved from drilling of wells to putting the wells on production is as below,

Development Well Drilling

Drilling (Development wells) Vertical / Directional

Formation Evaluation Logging/Measurement Open Hole Logging Hole section wise While Drilling (As & when required)

Formation Testing

Casing & Cementation (Hole Section Wise) Coring (side wall or conventional)

Cased Hole Logging (Hole Section Wise) Drill Cutting Analyses

Perforation (Gun Type)

Production Testing

Put on Production if commercially viable or abandoned* if tested dry

*Well may be abandoned considering various drilling and sub-surface hazards also

Exploratory Well Drilling

Drilling (Exploratory wells) Vertical / Directional

Formation Evaluation Logging/Measurement Open Hole Logging Hole section wise While Drilling (As & when required)

Formation Testing

Casing & Cementation

(Hole Section Wise) Coring (side wall or conventional)

Cased Hole Logging (Hole Section Wise) Drill Cutting Analyses

Perforation (Gun Type)

Production Testing

If tested for oil/gas, If tested dry, abandon declare discovery the well

Drill Appraisal well to delineate the reservoir

If commercially viable develop and

produce the discovery

3.5 Raw Material required

For carrying out the proposed activities, drilling related services like charter hired drilling rig, cementing, logging services etc. would be required for which respective contractor companies would be engaged.

Other production equipment like Tubular (casing and tubing), wellhead assembly, packer etc. and chemicals for mud and cementing required for the drilling operations shall be procured by the company before the commencement of the operations.

3.6 Resource optimization/recycling and reuse envisaged in the project

All drilling related services shall be utilized for drilling of all the wells in a particular phase. Also, any leftover drilling mud would be utilized for drilling of subsequent wells.

3.7 Availability of water its sources, Energy/power requirement

Facilities available at KOF complex for utilities, occupational health and safety etc. are discussed as below,

1. Water Supply: Water supply requirement is met through a full-fledged water supply system to meet the needs of process, housing and workers camp facility. Source of water is Namphuk River which has water throughout the year. Water is chlorinated for domestic use.

2. Power Generation: Power requirement at KOF for carrying out the operations and for domestic use is being met by in-house power generation. At 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 regular operational demand for power, 450 KVA gas genset is operated for about 11 to 12 hrs and then switched over to 180 KVA gas gensets – 2 gensets run simultaneously in fully synchronized mode for balance period of the day. Also, GeoEnpro has recently purchased a 500 KVA gas fired genset to meet the power requirement at the site and it is planned to be commissioned in next couple of months.

3.8 Quantity of Waste to be generated

Presently waste generated from the oil field is mainly in the form of formation water and minor sludge. An Effluent Treatment Plant (ETP) with treating capacity of 200 KLPD for treatment of formation water is operational at 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 authorized and licensed recycler.

Presently formation water is generated @ about 70-80 KL per day and with the project expansion it is likely to go up in stages which can be treated in the existing ETP. However, if needed all necessary arrangements will be made to enhance plant capacity/ create new plants to treat the enhanced formation water production to permissible limits before disposal of treated water. Presently, oil sludge production is about 120-130 Metric tonnes p.a. and is likely to go up with increase in production which will be disposed of to the authorized recycler.

CHAPTER - 4 SITE ANALYSIS

4.1 Connectivity: The Kharsang Oil Field is located in Changlang district of Arunachal Pradesh. The nearest towns are Margherita and Miao. Miao is around 25 Kms and Digboi is around 60km from Kharsang. The nearest Indian Rail head is Ledo (approx. 40 kms) which is connected by Broad Gauge Service. The nearest local airport is Dibrugarh, 120 km from Kharsang. The nearest port to disembark is Kolkata.

Changlang district consists of south eastern part of Arunachal Pradesh with Tirap District of Arunachal Pradesh and Tinsukia District of Assam towards west, Lohit District of Arunachal Pradesh towards north and Myanmar towards east and south. Kharsang is located at the centeral-western part of Changlang District at a distance of nearly 5.5 Km from Assam border (Namchik Gate). Kharsang is well connected by road to Dibrugarh via Margharita, Digboi and Tinsukia towns in Assam.

4.2 Land Form, Land Use and Land Ownership: Kharsang Oil Field has a total Mining Lease Area of 11 Sq.Km. 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. Out of the total Mining Lease area of 1100 hectares, around 136 hectares of land has already been diversified. Some of the proposed wells shall be drilled from the already diversified area (136 Hectares) within the KOF Mining lease area and for remaining approval for diversion of forest land shall be taken under of the Forest Conservation Act 1980.

4.3 Topography: KOF and surrounding area especially in eastern and southern direction are covered with dense mixed jungle (Namchik Reserved Forest). The area is rich in flora and fauna with scenic beauty of hilly terrain interspersed with lush green valleys in between. Highest peak (495 m) within KOF area is located at a distance of nearly 1 km from centre of the KOF in southern direction. District headquarters town Changlang is located at a distance of nearly 58 Km in south-west direction from KOF and can be approached through Margherita in Tinsukia District of Assam. The area does not have any ecologically and / or otherwise sensitive area or places of religious, historical or tourist importance.

Nearly 60 percent of southern part of KOF area is covered by dense mixed forest which extends further towards south and east directions of KOF. Namphuk Hka (river) flows just north of KOF essentially from east to west direction and touches central portion of the northern boundary of KOF. Haithong Wa, Longkhung Wa and Tingtai Wa (nullah) are the important nullahs flowing essentially from south to north direction and discharge in Namphuk Hka. Drainage of most of KOF is generally from south to north. The general nature of the southern half of the KOF appears as mountainous dense mixed forest without any patches of arable land and habitation. However, northern half of the KOF falling in Namphuk and Kharsang river valley has thinly populated villages with patches of arable land and habitation.

Kharsang Toposheet

4.4 Existing land use pattern: Kharsang Oil Field has a total Mining Lease Area of 11 Sq.Km. Out of the total Mining Lease area of 1100 hectares, around 136 hectares of land has already been diversified. Some of the proposed wells shall be drilled from the already diversified area (136 Hectares) within the KOF area and for remaining diversion of forest land shall be taken under the Forest Conservation Act 1980.

Further, 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 was submitted on May 26, 2014 and presently, is under examination.

4.5 Existing Infrastructure: Following infrastructure / facilities are available and operational at Kharsang Oil Field,

1. Oil Collecting Station (OCS) The crude oil being produced from the wells flows through the flowline to the existing OCS where it is treated to separate oil, water and gas. The wells of low pressure are being collected in the group tanks (GT). From there they are despatched to OCS. The Self Flow wells of sufficient pressure are received directly at OCS. All the well fluids are received at OCS via the header (manifold). Separate processing streams for High Wax and Low Wax crude are used. The treated crude oil from the OCS is then pumped through electric pumps to the Custody Transfer Tank Farm (CTTF).

2. Custody Transfer Tank Farm (CTTF) The CTTF has six number of fixed roof type crude oil storage tanks with capacity of 795 Kls each. The volumes in tanks are measured by traditional dip method. The crude oil is loaded in tankers (in the bowser loading point) by electric pumps. There is an additional diesel pump in case of power failure while bowser loading.

3. Effluent Treatment Plant (ETP) Presently, KOF has an operational Effluent Treatment Plant (ETP) with treating capacity of 200 KLPD for treatment of formation water 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 authorized and licensed recycler. Parameters like pH, temperature, salinity, oil and grease are monitored on daily basis.

4. Environmental Management Laboratory Environmental Management Cell (EMC) has been set up with the team comprising of HSE Officer/ Civil Engineer /Petroleum Engineer to monitor Ambient Air, water and noise. A well-equipped Environmental Laboratory has been set up at Kharsang Oil Field, having the facility to monitor ambient air, water and noise.

5. Housing Complex: KOF has a well-established housing complex to provide accommodation to the company employees and contractors during the operations. The housing complex provides dining and recreation facilities to the employees. The complex can provide accommodation to around 220 people.

6. Fire Service Station: KOF has a dedicated fire service department with dedicated and experienced team equipped with one water foam fire tender to timely attend and handle fire call / wild fire. Drenching facility and foam pouring arrangement has been made for Oil Collecting Station (OCS) and Custody Transfer Tank Farm (CTTF) tanks. An integrated water pipeline runs throughout oil installations and housing area supported by drenching pumps to pressurize the pipeline with water for drenching.

7. Occupational Health Centre: KOF has a well-equipped Occupational Health Centre (OHC) with qualified and dedicated Doctors to provide medical facilities. It is supported by Ambulance facility for needy during emergency situations. Free Health Check-up camps are organized and free medicines are provided to needy local people.

4.6 Soil Classification: KOF area belongs to eastern Himalayan foothills, warm and humid to per humid ecoregion with brown and red forest and podozolic soils which are relatively infertile and difficult to cultivate.

4.7 Climatic Conditions: KOF is located at an Elevation of around 200 M above Mean Sea Level (MSL) and with moderate climatic conditions. Temperature at Kharsang is moderate with ambient temperature in the range of minimum 9 Degree C and maximum 30 Degree C.

4.8 Social Infrastructure available:

Kharsang Oil Field has a well-established housing complex for stay of the company staff and employees. The complex can provide accommodation to around 220 people. Recreational facilities like, DTH/TV, Gym, Outdoor sports etc. are available at site for company staff/employees.

CHAPTER - 5 PLANNING BRIEF

5.1 Planning concept (type of industries, facilities, transportation etc.) Town and Country Planning/Development Authority Classification

There is a wide gap between the demand and supply of the oil and gas in our country. Indigenous crude oil and gas production is not sufficient to meet the growing demand for the energy. To meet the ever growing energy demand, India is currently importing around 75%-80% of crude oil from oil rich countries.

Kharsang Oil Field is located at Changlang District, Arunachal Pradesh and is presently contributing around 1500 BOPD to the domestic production and with further drilling of development and exploratory wells, the production is expected to increase significantly, which will help in reducing the import dependency of crude oil and save the precious foreign exchange.

5.2 Population Projection

Kharsang town is around 3 to 4 Km from the Kharsang Oil Field and the total population of the town is around 5000. Kharsang Oil Field has a well-established housing complex to provide accommodation to the company employees and contractor during the operations.

Contractor’s employees engaged during the operations will stay at the housing complex of the company on temporary basis and shall leave upon completion of the operations. As such, no major population projection is estimated after completion of the activities.

5.3 Land use Planning

Out of the total Mining Lease area of 1100 hectares, around 136 hectares of land has been diversified. Some of the proposed wells shall be drilled from the already diversified area (136 Hectares) within the KOF Mining lease area and for remaining diversion of forest land shall be taken under the Forest Conservation Act 1980.

An application for Diversion of Forest land (94.712 Hectares), for non-forest purposes, for drilling of new/additional wells within the KOF Area for seeking approval diversion of forest land under the Forest Conservation Act, 1980 was submitted on May 26, 2014 and presently, is under examination.

5.4 Assessment of Infrastructure Demand

Necessary infrastructure to carry out the proposed activities already exists at Kharsang Oil Field. The Kharsang Oil Field is well equipped with the below,  Oil Collecting Station (OCS)  Custody Transfer Tank Farm  Effluent Treatment Plant (treating capacity of 200 KLPD)  Power House to meet the power demand of the site  Fire Station equipped with water foam fire tender  Occupational Health Centre equipped with experience Doctor and medical staff  Housing Complex  Environment lab

5.5 Amenities / Facilities

Kharsang Oil Field has the following amenities / facilities for staff / employees,

 Housing facility – spacious rooms with attached bathrooms  Dining Facility  Laundry service  Recreation Facility - DTH, TV, Games, Gym etc.  Communication network (internet and phone service)  Drinking water facility  Transportation facility – to and fro from site

CHAPTER - 6 PROPOSED INFRASTRUCTURE

6.1 Industrial Area (Processing Area)

Necessary processing facility for crude oil and gas production already exist at Kharsang Oil Field. Apart from pipelines to hook-up the new wells to existing processing facilities, no additional infrastructure is proposed.

6.2 Residential Area (Non Processing Area)

Residential areas for the company staff/ employees already exists Kharsang Oil Field.

6.3 Green Belt

Kharsang Oil field is situated in a reserve forest area. Most of the activities are sub surface in nature and will not have any impact on the surface surrounding area.

6.4 Social Infrastructure

GeoEnpro carry out various CSR activities for the benefit and betterment of the local people, like providing free medical facilities through the medical Health Centre at Kharsang, Fire tender services to address forest fire / local fire calls, drinking water through ring wells, furniture and books for the schools, scholarships for the needy and deserving students, public facilities / infrastructure development etc. The Company plan to contribute in the below sectors as part of its CSR activities,

 Education  Health  Public Facilities / Infrastructure  Environment  Festival and other celebrations  Sports

6.5 Connectivity

Kharsang Oil Field is well connected with all means of the transport.

Railway Station: The nearest Indian Rail head is Ledo (approx. 40 kms) which is connected by Broad Gauge Service

Airport: The nearest local airport is Dibrugarh, 120 km from Kharsang

Highway: NH-38 at a distance of around 15-20 Km

6.6 Drinking Water Management

Water supply requirement is met through a full-fledged water supply system to meet the needs of process, housing and workers camp facility. Source of water is Namphuk River which has water throughout the year. Water is chlorinated for domestic use.

6.7 Sewerage System

Waste generated will be discharged in existing septic tanks in the existing housing complex

6.8 Industrial Waste Management

Industrial waste shall be treated in the existing Effluent Treatment Plant and other facilities at Kharsang Oil Field.

6.9 Solid Waste Management

Presently waste generated from the oil field is mainly in the form of formation water and minor sludge. We have presently an operational Effluent Treatment Plant (ETP) with treating capacity of 200 KLPD for treatment of formation water 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 authorized and licensed recycler.

6.10 Power Requirement & Supply / Source

Power requirement at KOF for carrying out the operations and for domestic use is being met by in-house power generation. We are presently utilizing natural gas produced from the field for domestic consumption and power generation. At 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 regular operational demand for power, 450 KVA gas genset is operated for about 11 to 12 hrs and then switched over to 180 KVA gas gensets – 2 gensets run simultaneously in fully synchronized mode for balance period of the day.

Also, GeoEnpro has recently purchased a 500 KVA gas fired genset to meet the power requirement at the site and it is planned to be commissioned in next couple of months.

CHAPTER - 7 REHABILITATION AND RESETTLEMENT (R&R) PLAN

7.1 Proposed development and exploratory / appraisal well drilling locations and approach roads are devoid of population as the same form part of the Namchik Reserve Forest area and fall under the Kharsang Mining Lease area, hence no R&R plan is applicable.

CHAPTER - 8 PROJECT SCHEDULE & COST ESTIMATES

8.1 The tentative schedule for the proposed drilling 40 development wells and 5 exploratory / appraisal wells at Kharsang Oil Field to be carried out in phases is as below,

Activity Quantity Period Drilling of Development wells 2 FY 2014-15 Drilling of Development wells 23 FY 2015-16 to FY 2016-17 Drilling of Exploratory / 5 FY 2015-16 to FY 2019-20 Appraisal wells Drilling of Development wells 15 FY 2017-18 to FY 2022-23

It, may, however be noted that the exact drilling programme for drilling of the above proposed wells shall depend on the approvals from the Central / State Government.

Total cost of the project is estimated to be around 720 Crores.

CHAPTER - 9 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS)

GeoEnpro propose 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.

Financial Benefits: Additional production of crude oil will not only save the foreign exchange but also benefit the State Government with enhanced royalty payment and Central Government with increased Cess payment.

Social Benefit: With carrying out of the proposed activities at the Kharsang Oil Field and increase in the production of crude oil, it would result in generation of direct and in-direct employment opportunities. The company has carried out many CSR activities in the past for betterment of the local and needy people of the region in terms of providing free medical facilities through the medical Health Centre at Kharsang, Fire tender services to address forest fire / local fire calls, drinking water through ring wells, furniture and books for the schools, scholarships for the needy and deserving students, public facilities / infrastructure development etc. The Company plan to contribute in the below sectors in the future as part of its CSR activities,

 Education  Health  Public Facilities / Infrastructure  Environment  Festival and other celebrations  Sports