Proposed project will help establish hydrocarbons in the block, help cut the country's oil import bill.
New Delhi: State-owned ONGC has received green clearance for the Rs 456-crore exploratory drilling project in Sivasagar district of Assam, a government document showed.
The company's proposal is to drill 10 wells in the petroleum lease areas -- Rudrasagar, Geleki, Lakwa, Namti, Mekypore, Santak Nazira -- of Sivasagar district. About 1.5-2.25 hectares of land are required for each well and the estimated project cost is Rs 456.20 crore.
In a letter issued to the Oil and Natural Gas Corporation (ONGC), the Union environment ministry has informed that the government has given final environment clearance to the proposed exploratory project in Assam.
The clearance is subject to compliance of certain specific and general conditions, it said. In its proposal, ONGC has said that exploratory drilling of 10 wells is highly prospective where oil and gas have been discovered and produced from a large stratigraphic column.
The proposed project will help establish hydrocarbons in the block, help cut the country's oil import bill and reduce imbalance in oil production and consumption, it said.
The commercial development will also lead to investment in Assam, bringing oil and gas revenues both to the state and the central government, it added. The exploration giant ONGC produces around 70 per cent of the country's crude oil and around 60 per cent of natural gas.
It is involved in exploring hydrocarbons in 26 sedimentary basins of India and owns and operates over 11,000 kilometres of pipelines in the country. Its international subsidiary, ONGC Videsh, has projects in 15 countries.