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APPENDIX – 1

APPLICATION FOR RENEWAL OF ENVIRONMENT CLEARANCE

FOR 5(FIVE) YEARS

FOR NAMCHIK PEL IN ARUNACHAL PRADESH

GRANTED VIDE F/NO. J-11011/877/ 2008-IA II (I) DATED 23.11.2010

FORM-I

(I) Basic Information: SL. NO.

Item Details

1 Name of the project

Onshore oil and gas exploration in Namchik PEL (Petroleum Exploration License) Block covering 195 sq km in Changlang district of Arunachal Pradesh.

2 Sl. No. in the schedule 1(b)

3 Proposed capacity/area/length tonnage to be handled/command area/lease area/ number of wells to be drilled

One exploratory well (NCK-1) is proposed to be drilled. Ten more exploratory and appraisal wells will be drilled in the area in future

4 New/Expansion/Modernization New

5 Existing Capacity/Area etc. 195 sq km - total area of the block

6 Category of Project i.e. “A” or “B” „A‟

7 Does it attract the general condition? If yes, please specify.

No

8 Does it attract the specific condition? If yes, please specify

No

9 Location : Co-ordinates of the block are enclosed in Annexure-I.

Plot/Survey/Khasra No.

Village -

Tehsil -

District Changlang

State Arunachal Pradesh

10 Nearest Railway station/airport along with distance in kms.

Nearest Rly stations- Lekhapani, Assam-30 km (approx) Nearest Airport-Dibrugarh, Assam, 135 km (approx).

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11 Nearest town, city, district Head quarters along with distance in kms.

Nearest towns – Margherita (50 km) & Tinsukia (100 km) in Assam Miao (20 km) & Kharsang (12 km) in Arunachal Pradesh Head quarter – Tinsukia (100 km) of Tinsukia district of Assam

12 Village Panchayats, Zilla Parishad, Municipal Corporation, Local body (complete postal addresses with telephone nos. to be given)

Presently, geo-scientific analysis and studies are in progress. Desired information will be provided once drilling locations are finalized.

13 Name of the applicant Dr. R Dasgupta, GM(NEF)

14 Registered Address NEF Project, Oil India Limited PO- Duliajan, Dist.- Dibrugarh, Assam-786602

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Address for correspondence:

Name Dr. R Dagupta

Designation (Owner/Partner/CEO) GM(NEF)

Address NEF Project, Oil India Limited PO- Duliajan, Dist.- Dibrugarh, Assam-786602

Pin Code 786602

E-mail nef@oilindia.in

Telephone No. 0374-2800405

Fax No. 0374-2801799

16 Details of Alternative Sites examined, if any,

location of these sites should be shown on a topo sheet

Alternative site not considered.

17 Interlinked Projects Not applicable

18 Whether separate application of interlinked project has been submitted?

No

19 If yes, date of submission Not applicable

20 If no, reason This project is for oil and gas exploration only. There is no interlinked project.

21 Whether the proposal involves approval/ clearance under : (a) The Forest (Conservation) Act, 1980? (b) The Wildlife (Projection Act, 1972?

(c) The CRZ Notification, 1991? If, yes, details of the same and their status to be given.

Drilling locations NCK-1 falls inside Namphuk Reserve Forest under Nampong Forest Division, Jairampur, Arunachal Pradesh. Accordingly Forest Clearance proposal under Forest (Conservation) Act, 1980 was

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submitted to Department of Environment & Forests, Itanagar, Arunachal Pradesh for diversion of 2.981 hectare of forestland for the location. The proposal, approval on which is still awaited, was submitted on 12.09.2008.

22 Whether there is any Government Order/ Policy relevant / relating to the site?

Forest Clearance proposal under F(C) Act, 1980 was submitted to Department of Environment & Forests, Itanagar, Arunachal Pradesh on 12.09.2008 for diversion of 2.981 hectare of forestland, which is awaited.

23 Forest land involved (hectares) 2.981 hectare

24 Whether there is any litigation pending against the project and or land in which the project is propose to be set up? (a) Name of the Court (b) Case No. (c) Orders/directions of the court, if any and its relevance with the proposed project.

No.

(II) Activity: 1. Construction, operation or decommissioning of the Project involving actions,

which will cause physical changes in the locality (topography, land use, changes in water bodies, etc.)

Sl. No.

Information/Checklist confirmation Yes/No

Details thereof (with appropriate quantities/ rates, wherever possible)

with source of information data.

1.1 Permanent or temporary change in land use, land cover or topography including in intensity of land use (with respect to local land use plan).

Yes There shall be temporary change in land cover.

1.2 Clearance of existing land, vegetation and buildings?

Yes Nearly 2.981 ha of land need to be cleared for drilling and associated activities for Loc. NCK-1. Ten more exploratory and appraisal wells will be drilled in the area in future In case of any hydrocarbon discovery in the area, additional land will be required for future drilling and associated activities. Field staff will

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stay at base camp near drilling site in mobile bunk houses /temporary camps.

1.3 Creation of new land uses? No -

1.4 Pre-construction investigations e.g. bore houses, soil testing?

No -

1.5 Construction works? Yes Construction of cellar pit and foundation for drilling rig will be done within the drilling site.

1.6 Demolition Works? No -

1.7 Temporary sites used for construction works or housing of construction workers?

Yes Construction workers will stay in mobile bunkers/ temporary camps.

1.8 Above ground building, structures or earthworks including linear structures, cut and fill or excavations.

No -

1.9 Underground works including mining or tunneling?

Yes The well will be drilled up to a depth of 5000m.

1.10 Reclamation works? No -

1.11 Dredging? No -

1.12 Offshore structures? No -

1.13 Production and manufacturing processes? Yes Production testing for about 30 days will be done.

1.14 Facilities for storage of goods or materials?

Yes Mobile facilities for drilling & testing period.

1.15 Facilities for treatment or disposal of solid waste or liquid effluents?

Yes Liquid effluent generated during drilling will be treated as per MoEF&CC/ PCB guidelines in on-site Effluent Treatment Plant (ETP) and will be recycled/ disposed. Drill cuttings and other solid wastes will be contained in HDPE lined pit within the drilling site.

1.16 Facilities for long term housing of operational workers?

No -

1.17 New road, rail or sea traffic during construction or operation?

Yes One gravel approach roads will be constructed for movement of vehicles & equipment to drilling sites.

1.18 New road, rail, air waterborne or other transport infrastructure including new o r a l te red routes and stations, ports, airports etc?

No -

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1.19 Closure or d i ve rs ion o f ex is t ing transport routes or infrastructure leading to changes in traffic movements?

No -

1.20 New or diverted transmission lines or pipelines?

No -

1.21 Impoundment, damming, culverting, realignment or other changes to the hydrology of watercourses or aquifers?

Yes Culverts will be provided, if required, for construction of approach.

1.22 Stream crossing? Yes Stream crossing, if any, will be done by building suitable culverts.

1.23 Abstraction or transfers of water from

ground or surface waters?

Yes Water requirement will be

met by drilling tube-wells at the drill site or by transporting water from near by sources.

1.24 Changes in water bodies or the land surface affecting drainage or run-off?

No -

1.25 Transport of personnel or materials for construction, operation or decommissioning?

Yes Transport of field personnel and materials will be involved during the operations.

1.26 Long-term dismantling or Decommissioning or restoration works?

No -

1.27 Ongoing activity during decommissioning which could have an impact on the environment?

No -

1.28 Influx of people to an area in either temporarily or permanently?

Yes Temporary movement personnel during operation.

1.29 Introduction of alien species? No -

1.30 Loss of native species or genetic diversity? No -

1.31 Any other actions? No -

2. Use of Natural resources for construction or operation of the Project (such as

land, water, materials or energy, especially any resources which are non-renewable or in short supply):

Note: It may be noted that drilling and testing of each well is likely to take around 4 months in normal operational conditions/circumstances. So, natural resources requirement will be very much temporary and minimal.

Sl. No.

Information/Checklist Confirmation

Yes/No Details thereof (with approximate

quantities/rates. Wherever possible) with source of information data.

2.1 Land especially undeveloped or agricultural land (ha)

Yes Nearly 3.0 ha of land will be required temporarily for drilling the Loc. NCK-1. Ten more exploratory and appraisal wells will be drilled in the area in future depending on discovery of hydrocarbon in the area. Accordingly, additional

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forestland may be required for the additional well(s) in the form of approach road and well site(s).

2.2 Water (expected source & competing users) unit: KLPD

Yes Nearly 50 m3 / day of ground water by installing tube wells at well site or from nearby by water resource.

2.3 Minerals (MT) No -

2.4 Construction material –stone, aggregates and/soil (expected source-MT)

Yes Building materials will be required for construction of approach road & drilling site. Same will be procured from the local market.

2.5 Forests and timber (Unit- MT) Yes Some trees will required to be cut and timber is likely to be salvaged due to cleaning of access route and preparation of drilling site. Compensatory afforestation will be carried out as per Forest (Conservation) Act, 1980.

2.6 Energy including electricity and fuels (source, competing users) Unit: fuel (MT), energy (MW)

Yes Mobile DG sets will be used to meet the drilling and other requirement of power of nearly 1000KW using nearly 3.5KLPD of HSD.

2.7 Any other natural resources (use appropriate standard units) No -

3. Use, storage, transport, handling or production of substances or materials,

which could be harmful to human health or the environment or raise concerns about actual or perceived risks to human health.

Sl. No.

Information/Checklist Confirmation

Yes/No Details thereof (with approximate

quantities/rates, wherever possible) with source of information data.

3.1 Use of substance or materials, which are hazardous (as per MSIHC rules) to human health or the environment (flora, fauna, and water supplies)

No In this project there will be no use of any substances or materials which are hazardous as per MSIHC rules.

3.2 Changes in occurrence of disease or affect disease vectors (e.g. insect or water borne diseases)

No Project activities will not likely cause changes in occurrence of disease or affect disease vectors.

3.3

Affect the welfare of people e.g. by changing living condition?

No Temporary job opportunities for local unskilled workers will arise during exploration stages. But, lifestyle and socio economic development will improve by way of job and business opportunities in case the exploration project is successful and commercially viable.

3.4 Vulnerable groups of No No hospital/school/elderly house in the

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people who could be affected by the project e.g. hospital patients, children, the elderly etc.,

immediate vicinity. Hence, no effect is envisaged.

3.5

Any other causes

No Occupational health and medical check-up of workers will be periodically done as per The Mines Act.

4. Production of solid wastes during construction or operation or decommissioning

(MT/month)

Sl. No.

Information/Checklist Confirmation

Yes/No Details thereof (with approximate quantities/rates, wherever possible) with source of information data.

4.1 Spoil, overburden or mine wastes

No Not envisaged

4.2 Municipal waste (domestic and or commercial wastes)

Yes Domestic wastes generated by nearly 50 persons working at the drilling site for about 4 months per well will be discharged in septic tanks and soak pits.

4.3 Hazardous wastes (as per Hazardous Waste

Management Rules)

No No hazardous wastes will be generated.

4.4 Other industrial process wastes

No No other industrial waste will be generated.

4.5 Surplus product No There will be no surplus product

4.6 Sewage sludge or other sludge from effluent treatment

Yes The sludge generated from wastewater treatment will be disposed off in High Density Polyethylene (HDPE) lined pits designed as per the regulatory requirements.

4.7 Construction or demolition wastes

No No construction waste will be generated.

4.8 Redundant machinery or Equipment

No Not envisaged

4.9 Contaminated soils or other materials

No No contaminated soil will be generated during construction or operation.

4.10 Agricultural wastes No No agricultural waste generated.

4.11 Other solid wastes Yes Drill cuttings of underground rocks and solids in water based mud used for

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drilling will be stored in impervious pits and will be covered by thick layer of soil to seal the pit on completion of exploratory drilling and testing.

5. Release of pollutants or any hazardous, toxic or noxious substances to air (Kg/hr)

Sl. No.

Information/Checklist Confirmation

Yes/No Details thereof (with approximate quantities/rates, wherever possible) with source of information data.

5.1 Emissions from combustion of fossil fuels from stationary or mobile sources

Yes Exhaust gases generated due to combustion of nearly 3.5 KLPD of HSD will be discharged from mobile DG sets with stacks of appropriate heights.

5.2 Emissions from production processes

Yes Natural gas generated during exploratory testing will be flared.

5.3 Emissions from materials handling including storage or transport

No Not envisaged.

5.4 Emissions from construction activities including plant and equipment

No Not envisaged

5.5 Dust or odours from handing of materials including construction materials, sewage and waste

No Not envisaged

5.6 Emissions from incineration of waste

No Not envisaged

5.7 Emissions from burning of waste in open air (e.g. slash materials, construction debris)

No Not envisaged

5.8 Emissions from any other sources

No Not envisaged

6. Generation of Noise and Vibration, and Emissions of Light and Heat:

Sl. No.

Information/Checklist Confirmation

Yes/No Details thereof (with approximate quantities/rates, wherever possible) with source of information data.

6.1 From operation of Yes Noise will be generated due to

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equipment e.g. engines, ventilation plant, crushers

operation of DG sets at drilling site but the same will be limited to 75 dB (A) (noise levels will be within permissible limits) at the periphery of exploratory drilling locations.

6.2 From industrial or similar processes

No No other industrial noise, vibration, and Emissions of light & heat envisaged.

6.3 From construction or demolition

No No construction or demolition activity generating considerable noise or vibration envisaged.

6.4 From blasting or piling No No blasting or piling activities involved in the operational activities and hence no noise & vibration will be generated.

6.5 From construction or operational traffic

Yes Transportation of Equipments by trucks and operation of the equipments will generate minimal noise on the route and at drill sites.

6.6 From lighting or cooling systems

No No noise is envisaged from lighting and cooling system.

6.7 From any other sources Yes Flaring of natural gas, if produced, during exploratory testing will generate some light and heat depending upon the quantity to be flared.

7. Risks of contamination of land or water from releases of pollutants into the

ground or into sewers, surface waters, groundwater, coastal waters or the sea: Sl. No.

Information/Checklist Confirmation

Yes/No Details thereof (with approximate quantities/rates, wherever possible) with source of information data.

7.1 From handling, storage, use or spillage of hazardous materials

No

7.2 From discharge of sewage or other effluents to water or the land (expected mode and place of discharge)

Yes Drilling discharges will be stored in impervious pits and treated effluent, meeting discharge limits, will be recycled for operational use.

7.3 By deposition of pollutants emitted to air or into the land or into water

No

7.4 From any other sources No

7.5 Is there a risk of long term build up of pollutants in the

No

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environment from these sources?

8. Risk of accidents during construction or operation of the Project, which could affect human health or the environment.

Sl. No.

Information/Checklist Confirmation Yes/No Details thereof (with approximate quantities/rates, wherever possible) with source of information data.

8.1 From explosions, spillages, fires etc from storage, handling, use or production of hazardous substances

Yes 1. Minor spillage of HSD from Tanker unloading and leaking valves, lines and storage tanks. Precaution will be taken to prevent it.

2. Blow out resulting in violent escape of hydrocarbons during drilling. Blow out Preventor (BOP) will be used to prevent Blow out.

3. Release of H2S is quite unlikely; in case it appears during drilling same will be neutralized by injecting scavenging chemicals.

8.2 From any other causes No

8.3 Could t h e project be affected by natural disasters causing environmental damage (e.g. floods, earthquakes, landslides, cloud burst etc)?

Yes The project might be affected by natural disasters.

1. Factors which should be considered (such as consequential development) which could lead to environmental effects or the potential for cumulative impacts with other existing or planned activities in the locality.

Sl. No.

Information/Checklist Confirmation

Yes/No Details thereof (with approximate quantities/rates, wherever possible) with source of information data.

9.1 Lead to development of supporting, facilities, ancillary development or development stimulated by the project which could have impact on the environment e.g.

Yes If commercially viable hydrocarbons production is established, then subsequent production of oil/gas will contribute in meeting energy needs and development of India and

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• Supporting infrastructure (roads, power supply, waste or waste water treatment, etc.) • Housing development • Extractive industries • Other

especially the surrounding areas will be directly benefitted in terms of economic development.

9.2 Lead to after-use of the site, which could haven impact on the environment

Yes If techno-economic viability is established, then early production set up system need to be constructed during production phase with suitable mitigative and control measures to avoid adverse impact on environment.

9.3 Set a precedent for later developments

Yes During production phase, if considered necessary, more wells may be drilled within the block area.

9.4 Have cumulative effects due to Proximity to other existing or planned projects with similar effects

No

(III) Environmental Sensitivity

Sl. No.

Areas Name/Identity Aerial distance (within 15 Km.)

Proposed project location boundary

1 Areas protected under international conventions, national or local legislation for their ecological, landscape, cultural or other related value

No

2 Areas which are important or sensitive for ecological reasons – wetlands water courses or other water bodies, coastal zone, biospheres, mountains, forests.

No

3 Areas used by protected, important or sensitive species of flora or fauna for breeding, nesting, foraging, over wintering, migration

No

4 Inland, coastal, marine or underground waters

No

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5 States, national boundaries No

6 Routes or facilities used by the public for access to recreation or other tourist, pilgrim areas.

No

7 Defence Installation No

8 Densely populated or built- up area. No

9 Areas occupied by sensitive man made land uses(Hospitals, Schools, Places of worship, Community facilities)

No

10 Areas containing important, high quality or scarce resources (ground water resources, surface resources, forestry, agriculture, fisheries, tourism, minerals)

No

11 Areas already subjected to pollution or environmental damage (those where existing legal environmental standards are exceeded.)

No

12 Areas susceptible to natural hazard which could cause the project to present environmental problems (earthquakes, subsidence, landslides, erosion, flooding or extreme or adverse climatic conditions).

No

(IV) Proposed Terms of Reference for EIA (Environment Impact Assessment) studies:

The scope of work for the study to be carried out shall include the following

activities/studies: 1.1 Activities: The main activities of the EIA must be as under:

(a) To assess the existing status of the land, air, water, noise and natural (biological/ecological) environment and socio-economic component of environment including parameters of human interest at the project site.

(b) To identify potentially significant impact on above mentioned environmental components due to planned drilling and testing activities and associated services for above mentioned wells.

(c) To predict significant qualitative and quantitative impact on major environmental factors.

(d) Based on prediction, identification and evaluation of impact of drilling and testing activities, to prepare an Environmental Impact Statement.

(e) To prepare an Environmental Management Action Plan (EMAP) outlining preventive and control strategies for minimizing adverse impact on environment due to aforesaid activities to be undertaken.

(f) To carry out risk assessment and emergency planning. (g) To prepare a draft EIA report. (h) To present during Public Hearing process and to address all the

environmental concerns based on the feedback of Public Hearing and to

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finalize the EIA report after making appropriate changes to the draft EIA report & EMAP.

(i) To assist in fulfilling all the formalities including submission of application to the concerned authority for Environmental Clearance (EC) to obtain EC.

1.2 Environmental Impact Assessment (EIA):

This will include collection of primary and secondary baseline data through field investigations, environmental monitoring and from secondary sources viz. maps, reports, scientific literatures etc. The collected data will then be analysed for identification of impacts and arrive at cost effective mitigation measures. The overall activities that are needed to be studied for environmental component are described briefly in subsequent paragraphs.

1.2.1 Air Environment:

(a) Assessment of existing levels of ambient air quality parameters like Suspended Particulate Matter (PM10) and Respirable Particulate Matter

(RPM), SO2, NOx etc. in ambient air. (b) Collections of metrological data namely Wind speed, wind direction,

temperature, rain fall etc. (c) Estimation and computation of air emissions resulting out of drilling

operations. (d) Evaluation of the adequacy of the proposed pollution control measures to meet air quality emission standards.

1.2.2 Noise Environment: (a) Measurement of noise level at drilling locations. (b) Estimation of noise levels due to operation of drilling rig, its associated

equipments and vehicular movements. (c) Prediction of evaluation of impacts due to increase in noise levels arising out

of the proposed activities on the surrounding environments. (d) Recommendations on mitigation measures for noise pollution.

1.2.3 Water Environment: (a) Study of water quality and quantity of nearby water sources. (b) Assessment of waste water characteristics and quantity of effluent to be

discharged from the proposed work. (c) Suggestions of suitable measures for prevention and control of water

pollution. 1.2.4 Land Environment:

(a) Study of existing vegetations, forestry, waste land, if any. (b) Assessment of generation of solid and hazardous waste, if any, from drilling

operations and its characteristics. (c) Suggestions of suitable measures for treatment and disposal of solid wastes.

1.2.5 Natural Environment: (a) Assessment of impacts of the project on nearby parks, sanctuaries, reserve

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forest or ecologically sensitive area/habitat, if any. (b) Assessment of potential impacts on ecosystem due to proposed activities. (c) Delineation of measures for protection of wildlife and conservation of trees.

1.2.6 Socio-economic Environment: (a) Assessment of impacts on places of historic/archeological importance and

aesthetic impairment, if any. (b) Assessment of labour requirement and employment potential for local

population. 1.2.7 Any other studies:

Any other studies that may be necessary to meet statutory requirements of the MoEF.

1.3 Environment Management Plan and Monitoring Plan: The Environmental Management Plan (EMP) should include a set of recommendations for air, noise, water and soil quality management, solid hazardous waste management, conservation of wild life and forest protection during the ongoing drilling and testing activities.

1.4 Risk Assessment and Emergency Planning: (a) Assessment of risks involved during drilling and testing operations and

identification of maximum credible accident scenario. (b) Suggestions of disaster management planning.

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Annexure-I

Co-ordinates of the Deomali PEL Area in Tirap District of Arunachal Pradesh Area: 113.5 Sq Km.

POINT Latitude Longitude

A 270 – 05'- 17" 950 – 24 '- 00"

B 270 – 04'- 27" 950 – 24 '- 45"

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P 270 – 07'- 36" 950 – 33 '- 00"

Q 270 – 08'- 06" 950 – 32 '- 45"

R 270 – 15'- 09" 950 – 51'- 18"

D 270 – 13'- 48" 950 – 41'- 18"

A 270 – 05'- 17" 950 – 24'- 00"

Draft Terms of Reference(TOR) for Deomali PEL Well 1. Project description and Project Benefits. 2. Site details including satellite image for 10 Km area. Details of Forest land, if any. Confirmation that there is no National Park/Wild Life Sanctuary/Eco Sensitive Area. 3. Land use along with maps and cropping pattern, vegetation Ecology, Flora and Fauna. 4. Details of compensation for the land ousters. 5. Demography and Socio-Economics of the area. 6. Process details for drilling. 7. Baseline data collection for air, water and soil for 5 weeks leaving the monsoon season in an area of 10 km radius with centre of Oil Field as its centre covering the area of all proposed drilling wells:

(a) Ambient Air Quality monitoring at 8 locations for PM10, PM2.5, SO2, NOx. (b) Background level of hydrocarbons (HC) and VOCs (5 samples). (c) Soil sample analysis at 10 locations. (d) Baseline underground and surface water quality in the vicinity of 10sq Km area. (e) Climatology & Metrology including wind speed, wind direction, temperature, rainfall etc. (f) Measurement of Noise level at 10 locations in the block.

8. Detailed water balance, Waste water generation and discharge. 9. Treatment and utilization of produced water. 10. Detailed solid waste generation, collection, segregations, its recycling and re- use, treatment and disposal. 11. Estimation and computation of air emission resulting out of drilling operations. 12. Assessment of impact on air, water, soil etc.

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13. Evaluation of the adequacy of the proposed pollution control measure to meet the air quality emission standards, water discharge norms, solid/hazardous waste generation and disposal. 14. Estimation of noise level due to operation of drilling, its associated equipments, vehicular movement and prediction & evaluation of impact due to increase in noise level arising out of the proposed activities on the surrounding environment. Proposed mitigation measure for noise pollution. 15. Storage of the chemicals at the site, proposed preventive measure for spillage and accident. 16. Environment Management Plan. 17. Risk Assessment and Disaster Management Plan:

(a) Identification of Hazards. (b) Consequence Analysis. © Risk Presentation & Proposed Measure for Risk Reduction. (d) Disaster Management Plan (DMP). (e) Oil Spill Contingency Plan and Emergency Response Plan.

18. Detail of drilling rigs to be used and measure for decommissioning of the rigs and projects. 19. Post project closure and monitoring programme . 20. Documentary proofs for membership of common disposal facilities, if any. 21. Details of proposed occupational health Surveillance programme for the employees and other labour. 22. Environmental monitoring programme while survey and drilling is undertaken. 23. Any other guidelines issued by MoEF, New Delhi, shall also be complied with. ********

Feasibility Report for drilling in Nominated PEL area of Deomali in Tirap District in the state of Arunachal Pradesh

Preamble:

OIL INDIA LIMITED (OIL), a Government of India Navaratna Enterprise, is currently engaged in carrying out exploration activities in its operational areas in Upper Assam, Arunachal Pradesh and Mizoram in the North Eastern part of

India for petroleum exploration. OIL is also undertaking hydrocarbon exploration activities in few Indian states and few overseas countries.

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Govt. of India and Arunachal Pradesh has awarded Petroleum Exploration License (PEL) in Tirap district and adjoining areas for exploration

of oil & gas to Oil India Limited. Deomali PEL area covering an area of 365.16 sq km was initially granted to OIL w.e.f 18.02.1999. The total PEL area was bifurcated into two parts. Out of the above 365.16 sq km of the original PEL

area, 213.83 sq km was carved out by Govt. of India as JV Block AAP-ON-94/1 effecting 01.01.2001 during pre-NELP round and thereby the remaining 151.33

sq km remained with OIL. During the re-grant of the said PEL due on 18.02.2005, after initial period of 6-years, 37.83 sq km was relinquished as per Government policy (25% of original area is to be relinquished when apply for

re-grant). Re-grant for 4 years w.e.f. 18.02.2005 to 17.02.2009 and additional 1140 days extension beyond 17.02.2009 up to 03.04.2012 under excusable delay were issued to OIL for the remaining Deomali PEL area of 113.5 sq km.

The PEL covering the area of 113.5 sq km was further extended in Jan‟2013 for two more years w.e.f. 04.04.2012 under excusable delay and it is now valid up

to 03.04.2014. As per MWP, 1(one) Exploratory Well is to be drilled in the area for the purpose of exploration of Hydrocarbon in the Deomali PEL. Accordingly, based

on field geological modeling & satellite imagery as well as acquisition of 70.88 GLKM of 2D seismic data (against MWP commitment of 60 GLKM) and their subsequent Processing & Interpretation, out of the 5(five) drillable locations,

two prospects namely Loc. DML-1 and Loc. DML-2 were identified. Additionally, 96 Nos. of near surface soil samples were collected and

geochemical analysis of the same is presently in progress. As both the identified prospects fall within Reserve Forest area, OIL applied for Forest Clearance/De-reservation of forest land to the concerned

authorities of Govt. of Arunachal Pradesh on 05.07.2011, which is yet to be received.

Location of the Deomali PEL Area

Figure-1

Table-1

POINT Latitude Longitude

A 270 – 05'- 17" 950 – 24 '- 00"

B 270 – 04'- 27" 950 – 24 '- 45"

P 270 – 07'- 36" 950 – 33 '- 00"

Q 270 – 08'- 06" 950 – 32 '- 45"

R 270 – 15'- 09" 950 – 51'- 18"

D 270 – 13'- 48" 950 – 41'- 18"

A 270 – 05'- 17" 950 – 24'- 00"

The block is situated in Tirap &

Changlang District of Arunachal

Pradesh (Fig-1) and is bounded by

the co-ordinates of the corner

points as given in Table-1 A B

P Q

R

D

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A. Technical Feasibility for the Deomali PEL Block: Geoscientific works carried out in the block

The Paleogene sediments present in the area represents geosynclinal facies and

overthrusted between two major thrust – Margherita thrust on the north and the Disang thrust on the south. Moreover, the litho units are also dissected by a number of faults in between these structural elements. The Naga-Patkai

folded belt, an integral part of Indo-Myanmar range owes its formation as a result of subduction of the Indian plate under the Burmese microcontinent of the Eurassian plate during the Cenozoic era.

Geophysical Survey: OIL acquired 70 GLKM of 2D seismic data in the area and the prospect for hydrocarbon in the block has already been identified.

Exploratory Drilling: No exploratory well is drilled in the block.

Technical Assessment & Geological Modeling: Based on the overall studies carried out in the block i.e Geological mapping & 2D seismic API, drillable prospect has been identified in the block area.

The positions of the identified locations are as below:

Locations

Co-ordinate (LLC WGS 84)

Latitude Longitude

Deomali-1 (DML-1) 270 07' 43.2″ 950 28' 35.9″

Deomali-2 (DML-2) 270 13' 59.7″ 950 44' 05.3″

Deomali-3 (DML-3) 270 06' 20″ 950 27' 28″

Deomali-4 (DML-4) 270 10' 43″ 950 36' 23″

Geological Survey: The area was mapped by many geologists of

Assam Oil Company (AOC), Burma Oil Company (BOC), Geological

Survey of India (GSI) and Oil India Limited (OIL) since 1932. The

block area is covered by outcrops of Tertiary sedimentary rocks. The

geological map of the area with the stratigraphic succession exposed,

is given in Figure-2

Figure-2

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Based on the further geo-scientific studies the above locations may be shifted/

fine tuned if required. Stratigraphy of the Deomali area: The expected Stratigraphy within the block could be as follows:

AGE GROUP FORMATION

Recent Alluvium

Mio-Pliocene Dupi Tila Namsang

Miocene Tipam Girujan Clay Tipam Sandstone

Oligocene Barail Upper Barail Lower Barail

Eocene Disang Disang

Petroleum System within the Deomali Block Source & Migration: With the exception of the Barail Coal Shale, most

rock in Assam Shelf and Naga Schupen Belt area do not have high Total Organic Carbon (TOC) contents. Many formations have low to moderate TOC values. Disang shales are considered to be as potential source rock and fed

most of the oil fields lies within Belt of Schupen. It is observed that the hydrocarbon prospectivity decreases towards the

thrust belt hinterland beyond the Disang thrust while along the foreland areas

adjoining the prospects are higher. The thrust plans of Naga & Disang thrust act as the major conduit for hydrocarbon expulsion from its source areas with

dominant horizontal component while the subsidiary thrusts acting as conduit for vertical migration.

Reservoir: Moderate to excellent quality reservoir rocks are present throughout most of the Stratigraphic sections in the Naga Schupen Belt area.

The isolated sandstone bodies within Girujan clay, Tipam Sandstones & Barail Group Sandstones are the most productive reservoirs in the area. Although, the Disang group has not been penetrated in the area, the reservoir potential of

the sandstones occur within Disang shales can not be ruled out. Trap and Seal: Anticlines and faulted anticlinal structures, sub parallel

to and associated with N-E trending Naga Thrust are the primary traps in Assam-Arakan basin.

Logistics and Topography: The block is covered with thick tropical forests, shallow river channels/reverie sands, rocky/hilly terrain with steep slopes & cliffs and some flat terrain. The

Deomali-5 (DML-5) 270 12' 17″ 950 40' 00″

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areas, in and around the forests, host a varieties of thick undergrowth vegetation. Parts of these forest-covered areas are marshy lands,

uneven/rugged topography, frequent water logged and surface/near surface boulder covered areas unapproachable by motorable roads throughout the year. Surface elevations in the areas of operation are in the range of 100-900

mts.

B. Operational Feasibility for Exploration in the Deomali PEL Block:

The Deomali PEL area is located in the southern part of the OIL‟s operational area in Arunachal Pradesh. The overall topography within the PEL area is tough & rugged. While the identified Loc. DML-1 is inside Namsang Social

Forest Area of Tirap District (AP) and falls in the North-Western part of the PEL area, the Loc DML-2 is in Namdang Reserve Forest of Changlang District (AP)

and in the North-Eastern part of the block. It is mostly covered with dense mixed jungles with small villages/ habitations scattered here & there. Necessary approvals/clearances sought for diversion of the reserve forest areas

for non –forestry purpose for drilling well Locations from the concerned authority of the Arunachal Pradesh Goernement as per the provision of the Forest Conservation Act, 1980 . Three motorable roads namely Margherita-

Chanlang, Jaipur-Khonsa and Jaipur-Deomali-Soha are passing through the block.

The Loc. DML-1 in the North-Western part of the block is by the side of Jaipur-Deomali-Soha road beyond Deomali. Jaipur, approx. 20 km from Duliajan, the Field Headquarters of OIL, is well connected through major roads

suitable for all kinds of vehicular/equipment movement. Khonsa, the Headquarters of Tirap district is approx. 25 km from Deomali. While Jaipur-

Deomali is 15 km, Deomali to Loc. DML-1 is approx. 8 km. This portion of the road, especially beyond Deomali will need major repairing/strengthening to make it suitable for mobilization of drilling rig & its associated service

packages. Jaipur/Deomali is also well connected through railway. The nearest railway station Naharkatia is 35 km from Deomali and other stations Namrup,

Duliajan, Tinsukia are within 45-75 km distance and on the main BG railway network connecting rest of the country. The nearest airport at Dibrugarh is

110 km from Deomali. The Loc DML-2 in the North-eastern part of the PEL area is well connected from Margherita. It is by the side of Margherita-Chanlang road and approx. 10

km from Margherita. Though Margherita-Chanlang road (45 km) is a good motorabe road; at stretches it needs be strengthened/repaired to make it

suitable for heavy vehicular/rig package movement to the site. Margherita, approx. 50 km from Tinsukia and almost at same distance from Duliajan, is well connected through NH-38 suitable for all kinds of vehicular/

equipment movement. It is having its own railway station and the nearest airport at Dibrugarh is approx. 85 km away. It is accordingly feasible to mobilize rig & associated service packages to the

block especially to the identified locations DML-1 and DML-2.

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C. Economic Feasibility: As detailed under Technical feasibility & Operational feasibility, the PEL area is expected to offer a tenable cost- benefit scenario for carrying out the exploration activities as per the MWP. However, OIL is in the process of carrying out the further detailed Techno-Economic analysis for the PEL area based on the recently acquired geo-scientific information.

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