Hindustan Oil Exploration Company has provided update on Dirok Gas Development Project:
The Company had completed Phase 1 of Dirok Gas Development and successfully tested the gas flow during last week of March 2017 and have been supporting Oil India, the Licensee of the block, to secure Petroleum Mining Lease (PML) as approved and recommended by the Government of India to the Government of Assam to commence commercial gas sales by May 2017.
The Assam State Board for Wildlife (SBWL) headed by the Chief Minister had recommended the project in full including all the wells. However, the Standing Committee of National Board for Wild Life (NBWL), Ministry of Environment and Forests, during its meeting held on 15 May 2017 while approving the overall project, imposed restrictions on oil and gas wells located within one kilometer of Wild Life Sanctuaries.
As the wells located within the 1 km area were drilled after submission of wild life management plan and duly approved by the appropriate authorities and this one kilometer restriction around Protected Areas were not part of any previous guidelines of Ministry of Environment
and Forest, a representation is being submitted to the Ministry of Environment and Forests, for removal of this restrictive new condition. The representation of the Company is supported by the nodal ministry, Ministry of Petroleum and Natural Gas.
The Company expects that the matter will be placed before the Standing Committee of NBWL for reconsideration in the light of its wider adverse implications across all oil and gas producing wells located within 1 km of Protected Areas.
All project activities of Phase 2 are on track. The Company has successfully drilled Dirok 5 well. After its ongoing testing and completion, the rig will commence drilling of Dirok 6 well.
Due to this unforeseen development, the Company anticipates further delays in issue of PML to Oil India and now expect to commence commercial gas sales only during July - September quarter, post review of its representation by NBWL.
The Company is confident of resolving this issue with the support of Ministry of Petroleum and Natural Gas and reiterates its earlier guidance of exiting Q2 FY 2018 with a production level of 25 million standard cubic feet per day and a plant capacity to process 36 million standard cubic
feet per day (equivalent to 1 million standard cubic meters per day).
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