Pre-feasibility Report Development Drilling, Construction of GGS and transportation Pipeline at onshore block AAP-ON- 94/1 Tinsukia District, Assam Hindustan Oil Exploration Company Pvt. Ltd. July 2014 Development Wells, GGS, Pipeline- AAP-ON-94/1 Block Table of Contents 1 Introduction....................................................................................................................3 1.1 Block Details..................................................................................................................4 2 Proposed Project ............................................................................................................5 2.1 Project Justification........................................................................................................5 2.2 Development Drilling ....................................................................................................5 2.2.1 Infrastructure, Accessibility, Land Lease and Site Preparation.............................5 2.2.2 Drilling Program ....................................................................................................8 2.2.3 General Requirements of Drilling..........................................................................8 2.3 Gas Gathering Station..................................................................................................10 2.4 Pipeline ........................................................................................................................11 2.5 Project Investment .......................................................................................................12 3 Ecological Settings of the Area....................................................................................13 List of Figure Figure 1: Location Map of the Block Area................................................................................3 Figure-2: Schematic Layout of the GGS .................................................................................11 List of Table Table-1: Distance of the Existing and Proposed Facility from WLS ......................................13 a HOEC Development Wells, GGS, Pipeline- AAP-ON-94/1 Block This page is intentionally left blank. b HOEC Development Wells, GGS, Pipeline- AAP-ON-94/1 Block 1 Introduction The block AAP-ON-94/1 (area 305 sq. km) is located in Tinsukia district of Assam,. The block lies between Latitude 27°18'54.99'' to 27°11'30.00'' North and Longitude 95°56'55.92'' to 95°20'00.00'' East. The block is bounded in the north by Digboi town and the Barajan, Tarajan and Jaipur settlements, in south by Tirap district of Arunachal Pradesh, in the east by Tirap river and in the west by Namrup and Hukanimuri settlement. FIGURE 1: LOCATION MAP OF THE BLOCK AREA The block AAP-ON-94/1 was first awarded for exploration to Joint Venture Consortium by the Government of India (GoI). Production Sharing Contract (PSC) for Block AAP-ON-94/1 was signed on June 30th 1998. Presently, the JV Consortium of the block comprises of Hindustan Oil Exploration Company Limited (HOEC), Oil India Limited [OIL] and Indian Oil Corporation Ltd (IOCL). Hindustan Oil Exploration Company limited is the Operator and Oil India Limited is the Licensee of the block. The Participating Interest of the JV Consortium in the development phase is as follows: HOEC (26.882%), OIL (44.086%) and IOCL (29.032%). JV Consortium has acquired 2D/3D seismic data and drilled three exploratory and two appraisal wells in the block. Several sizeable prospects have been mapped and the Dirok July 2014 3 HOEC Development Wells, GGS, Pipeline- AAP-ON-94/1 Block wells drilled by the Consortium have confirmed the presence of multiple gas bearing sands. Based on the Dirok Discovery and subsequent drilling of appraisal wells in the block, which produced hydrocarbon from multiple sands from Girujan Formation; the Ministry of Petroleum and Natural Gas (MoPNG) has approved the Dirok discovery as commercial. Based on the Declaration of Commerciality (DoC) report, a Plan of Development (PoD) is being prepared for the field development. 1.1 BLOCK DETAILS The Block AAP-ON-94/1 is located in Assam-Arakan Basin and falls within geologically complex Schuppen Thrust Belt. It is located in Tinsukia District of the State of Assam, NE India. The nearby important towns are Duliajan (Head Quarters of Oil India Ltd) and Dibrugarh. Geologically the Block falls within the Schuppen Belt of the Assam-Arakan Basin. The Block lies south of the famous Digboi Field. Areas under reserve forest and wild life sanctuary cover northern and western parts of the Block respectively. In the central part of the block the river Dihing flows across the block from ENE to WSW. The southern part of the block is covered by uplands and hills. Rest of the area is covered by Tea Garden plantations. Opencast and underground coal mines operated by Coal India Limited are situated in the eastern part of the block AAP-ON-94/1. Dirok-1 is the discovery well in the block with number of gas bearing sands in Girujan Formation. Dirok-2 & Dirok-4 are appraisal wells with depth of 2500m TVD. The appraisal well DRK-2 was drilled on the same plinth within 40 m radius of DRK-1. Dirok-4 was drilled on southern flank of Dirok structure at a distance of 2 Km towards NE. A total of 17 gas bearing sands in Girujan Formation are identified and will be developed in development phase to produce hydrocarbon. All the existing wells will be put on production and three new wells will be drilled up to the target depth of 2500m TVD for field development. The lithology encountered by these wells mostly will be Girujan Formation. July 2014 4 HOEC Development Wells, GGS, Pipeline- AAP-ON-94/1 Block 2 Proposed Project Three wells were drilled in the Dirok site of the block during exploration and appraisal stage. The consortium now planned the following activities: • Existing three wells will be put on production • Three new development wells will be drilled and completed as producer wells • Setting up of Gas Gathering Station (GGS) • A gas pipeline shall be built to evacuate natural gas from GGS to Kusijan FGGS (Field Gas Gathering Station) 2.1 PROJECT JUSTIFICATION Dirok-1 is a discovery well in the block and produced gas from multiple Girujan sands, subsequently appraisal wells Dirok-2 & Dirok-4 were drilled in the block and they also produced gas from the multiple Girujan sands. Ministry of Petroleum and Natural gas (MoP&NG) has approved the Dirok Discovery as commercial for Field Development. Dirok Field on development will produce approximately 20 MMSCFD gas and 800 bbl of condensate. The gas will be marketed to various consumers like petrochemical/ fertilizers/ power plants and others small scale industries in the nearby area and condensate will be dispatched to Digboi refinery. The Dirok gas will cater the energy demand in the North East area and will also generate employment for the local people. 2.2 DEVELOPMENT DRILLING 2.2.1 Infrastructure, Accessibility, Land Lease and Site Preparation Accessibility The proposed drill sites falls within Tinsukia district of Assam and well connected with Digboi through NH 38. Dibrugarh is the nearest airport located at distance of 80 km from Digboi which is again directly connected to the metropolis of Kolkata and Guwahati. The nearest railway station is at Margherita. The major towns in this district are Tinsukia, Digboi, Margherita, Doom Dooma & Makum which are interlinked with each other through the NH- 37 & NH-38. The NH-37 is the main road link between the district of Tinsukia and the rest of Assam and the country. From Makum Junction the NH-37 bifurcates and continues as NH-38 to the town of Digboi. The NH-38 serves as the main connecting link of all the six drill sites and the town of Digboi. This is also the proposed route that will be used by HOEC for bringing in heavy drilling machinery and equipment. The Dirok area is connected with the state highway through Margarita-Deomali Road. And all the drill sites are well connected with internal roads of the Tea Garden. July 2014 5 HOEC Development Wells, GGS, Pipeline- AAP-ON-94/1 Block Land Lease The three existing drill sites and three new proposed drill sites are located in Dirok Tea Estate. About 2.0 hectares (approx) of land for each drilling will be taken on long-term lease from Tea Estate. Site Preparation Site preparation will involve all activities required to facilitate the operation with the drilling rig and associated equipments and machineries. The existing drill sites (3 nos) have already been developed. Construction of approach road to the existing drill site would not be required. However, for three new drill sites the existing tea garden approach road will be widened u, if required new approach road will be constructed. It will be ensured that the land fill material and gravel for this purpose is obtained from government approved borrow areas and quarries. Clearance of existing vegetation (Tea bushes and shed trees) at the drill sites will be carried out after taking permission from Tea Estate and Forest Department. Once the approach road to the site is developed, the drilling site will be elevated to a required height. The top soil which primarily comprises of 150 mm loose top soil will be removed using mechanical means like dozer and saved at a nearby place for later use during site restoration. Leveling and compaction will be done with the help of graders and mechanical rollers. Earth and fill material and rubble will be required for land filling and site