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Pre-Feasibility Report Project Proponent: Oil & Natural Gas Corporation Ltd. (ONGC) Unit: Rajasthan Kutch On-land Exploratory Asset , Jodhpur Project Area: Chinewala Tibba Field , Jaisalmer, Rajasthan

Pre-Feasibility Reportenvironmentclearance.nic.in/writereaddata/Online/TOR/13... · 2017-06-13 · 16. Conclusion ONGC proposes to carry out Development drilling of six new locations

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Page 1: Pre-Feasibility Reportenvironmentclearance.nic.in/writereaddata/Online/TOR/13... · 2017-06-13 · 16. Conclusion ONGC proposes to carry out Development drilling of six new locations

Pre-Feasibility Report

Project Proponent: Oil & Natural Gas Corporation Ltd. (ONGC)

Unit: Rajasthan Kutch On-land Exploratory Asset , Jodhpur

Project Area: Chinewala Tibba Field , Jaisalmer, Rajasthan

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1.0-Executive Summary

Project Identification and Background

In Chinnewala Tibba Field, ONGC had discovered gas in four exploratory wells viz. CT#1,

CT#2, CT#3 & CT#4 in its Cretaceous reservoirs namely, Lower Goru and Pariwar sands. The

breakthrough has opened up large areas for future accelerated exploratory activities and

subsequent development of the area. Chinnewala Tibba Field in Jaisalmer, covering area of

114.86 sq km with validity up to 15.10.2023.Discovery of Chinnewala Tibba Field in Jaisalmer,

has also established the exploration prospectivity of Cretaceous plays in the entire Jaisalmer

Basin.

To monetize the Chinewala Tibba Field, ONGC has plans to start production from the

existing exploratory wells namely CT-1, CT-2 &CT-4 in Phase I. In Phase II, it is proposed

to drill Development wells viz.ICT-1, ICT-2, ICT-3, ICT-4, ICT-5 & ICT-6 to augment

production from the field.

In order to transport gas from Chinnewala Tibba Field to Gas Collecting Station (GCS) facility

at Gamnewala, Jaisalmer, ONGC proposes to lay 42 km Underground Pipeline of 10” diameter

from Chinnewala Tibba Field to GCS. Further to cater to the increase in production, it is also

proposed to up-grade existing GCS facility at Gamnewala from 200000 Standard Cubic

Metre per day (SCMD) to 500000 SCMD.To increase the capacity of GCS, installation of

high and low pressure separators including Field Manifold is required. The existing Flare line

capacity (Box Type) and Gas Compression System are to be installed for transporting gas from

GCS to GAIL trunk pipeline.

Major Highlights of the Project:

S No Parameter Description

2. Area Chinnewala Tibba Field has a total mining lease area of 114.86 Sq.

KM

1. Location Chinnewala Tibba Field is located in the Jaisalmer District of

Rajasthan, the coordinates of various wells is section 3.1. of the

report.

2. Existing Capacity In Chinnewala Tibba Field, gas was discovered in three exploratory

wells viz. CT#1, CT#2, & CT#4. The cumulative gas production at the end of 15-year period being

0.784 BCM on the basis of production testing data.

3. Need of Project The proposed project would increase the gas production of the region

and create new opportunities for the local area.

5. Water Requirement and

Source

Water from nearby canal and tube wells would be drawn. Estimated

requirement would be around 3.5 KL/day for the drilling of

development wells.

6. Waste generation and

treatment

Drilling fluids used are non- hazardous& non- toxic. Drill cuttings

will be separated and disposed in HDPE line pit. As the drilling mud

is water based, the drilled cuttings would be non-hazardous in nature.

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7. Power supply and source DG sets of 1250 KVA x4 no would be the source at drilling sites

whereas State electricity board would be the source at GCS

Gamnewala with backup from DG sets if required.

8. Site Connectivity Chinewala Tibba Field and GCS are well connected with Jaisalmer

(Nearest railway station) through well maintained metalled roads.

Jaisalmer is around 150 KM from Chinewala Tibba ML area. Nearest

airport is Jodhpur ,around 400 KM.

9. Existing Infrastructure Presently, maximum of around 50000 SCMD of gas from Maneherra

Tibba Field is being supplied through GCS at Gamnewala to Gas

turbine power plant at Ramgarh. The present capacity of GCS is

200000 M3 per day. Departmental drilling rig (Electrical) would be

utilized for development drilling.

10. Alternative site No alternate site is considered as all operations are to be carried out in

the Chinnewala Tibba Field only.

11. Raw material required Drilling related material like HSD, Steel (in the form of casings) and

Chemicals like Baryte, Oil well cement and Bentonite would be

required.

12. Land Form, Land use and

land ownership

Most of the land to be used in the project is Government land given on

lease to ONGC .The land associated with producing wells is being

permanently acquired.Most of the land to be used for the purpose is

barren land.

13. Financial and social benefit RRVUNL (Rajasthan Rajya Vidyut Utpadan Nigam Ltd.) is only

established customer for gas in Jaisalmer The state government stands

to gain royalty from the production of gas from Chinnewala Tibba

Field. CSR activities would be carried out by the company for

betterment of the local people of the region. The drilling activities

would improve the local infrastructure of the border area.

14 Cost of the Project Rs. 28392 Lakhs.

15. Environment Management

Plan (EMP)

Proper EMP would be implemented to take care of various

environmental components viz. air, water, land, noise, soil and

biological aspects of the proposed project region.

16. Conclusion ONGC proposes to carry out Development drilling of six new locations

and conversion of existing exploratory locations (three) to

development for production purpose. Besides drilling of location,

pipeline is to be laid from Chinewala Field to the Gas Collecting

Station (GCS) at Gamnewala. The present GCS is also to be upgraded

from 200000 SCMD to 500000 SCMD. The envisaged peak gas rate

in the field is expected to be 4.35 LSCMD. The cumulative gas

production at the end of 15 year period is expected to be 1.279 BCM.

The gas produced during testing in the selected wells in the field

comprises higher methane percentage and moderate to high calorific

value compared to other fields of the Jaisamer Basin. The monetization

of Chinnewala Tibba Field not only would result in improved energy

scenario of for the country but will also generate opportunities for the

local people and would help in the economic up-liftment of the region.

The company will adopt all the measures through its Environment

Management Plan and Disaster management plans to prevent harm and

damage to environment (if any) due to production/drilling activities in

the Chinnewala Tibba Field.

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2.0-Introduction of the Project / Background Information

2.1- Identification of project and project proponent

The hydrocarbon exploration activities in the Jaisalmer Basin started in late fifties with the initiation of

the geological mapping. This was followed by Gravity-Magnetic survey and conventional seismic

investigations and finally by the drilling of the first well in 1964. Exploration endeavours by ONGC

during the last five decades have resulted in discovery of eight gas fields in the Jaisalmer Basin. These

gas fields are Manhera Tibba, Bankia, Ghotaru, Bakhri Tibba, Kharatar, Sadewala, Chinnewala Tibba

and Chanwarwala Dara.

Chinnewala Tibba structure is an independent structural closure on the south-western part of the

Jaisalmer Mari High. The structure extends from Jaisalmer to Khuiala levels with varying degree of

amplitude and is bounded by north – south oriented faults both in the east as well west.

The field has multi- layered gas reservoirs in Lower Goru and Pariwar formations (Early-Middle

Cretaceous). Indication of light crude oil/ condensate (API: 45-550) has also been observed during

testing of wells CT-1, 2 & 4. The field is spread in N-S direction, measuring about 13 KM in length and

3 to 5 KM in width.

In Chinnewala Tibba Field, ONGC has discovered gas in four exploratory wells viz. CT#1, CT#2,

CT#3 & CT#4 in its Cretaceous reservoirs namely, Lower Goru and Pariwar sands. The breakthrough

has opened up large areas for future accelerated exploratory activities and subsequent development of

the area. Discovery of Chinnewala Tibba ML had has also established the exploration prospectivity of

Cretaceous plays in the entire Jaisalmer Basin.

The total area of the Chinnewala Tibba Field (ML is 114.86 Sq. M. The Mining lease has been

granted by the Government of Rajasthan vide order F.18 (5)/Mines/Gr.2/2004 dated 06.02.2008 with

validity up to 15.10.2023.

2.2-Brief Description of the Nature of Project

The project involves the monetization of Chinnewala Tibba Field through gas production. The

various activities of the project are: A. Up gradation of GCS at Gamnewala, Jaisalmer (Dist.)

Existing Gas Compression facility to be increased to from 200000 SCMD to 500000

SCMD

Hook up of High pressure gas lines

Three Phase High Pressure Separator

Low Pressure Separator

Field Manifold(in between)

Existing Flare line capacity(Box Type)

N2 & CO2 separation plants to be installed.

Gas Compression System for transportation from GCS to GAIL trunk pipeline.

B. Laying of Underground Pipeline: 10” Dia. x 42 KM from Chinewala Tibba (CT) Field, to

the existing GCS at Gamnewala.

C. Production from Wells:

Phase-I: Conversion of exploratory wells viz.CT-1, CT-2 &CT-4 to Development wells for

production.

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Phase-II: Development drilling for production from six new wells viz.ICT-1, ICT-2, ICT-3,

ICT-4, ICT-5 & ICT-6.

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

With conversion of exploratory wells to development wells & drilling of proposed development wells

in the Chinewala Tibba Field, present gas production is expected to increase which would contribute

in the development of the remote desert area of the country.

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, and taxation. This will also assist

in the economic development of this less developed area of Rajasthan by means of generating direct

and indirect employment opportunities for the local people of the region.

2.4 –Demand Supply Gap

The proposed project would definitely play its part in reducing the gap between the demand and

supply of gas. RRVUNL (Rajasthan Rajya Vidyut Utpadan Nigam Ltd.) is only established customer

for gas in Jaisalmer Basin is going to increase its output due to more gas supply from the proposed

project which will bridge the gap between demand and supply of power for the domestic consumer. It

will open up avenues for more commercial and industrial activities.

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 hefty import bills. Increase in domestic production of gas 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. The proposed project would not have any impact on export, however, gas production

from Chinewala Tibba Field will be sent to RRVUNL (Rajasthan Rajya Vidyut Utpadan Nigam Ltd.)

for power generation for domestic use.

2.7- Domestic / Export Market

Gas produced at Chinewala Tibba Field is being sent to RRVUNL (Rajasthan Rajya Vidyut Utpadan

Nigam Ltd.) at Ramgarh for power production for domestic consumption only.

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 Rajasthan

and will help in generating direct and indirect employment opportunities for the local people in the

field of transport sector, oil field services, civil construction, skilled and non-skilled employment etc.

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3.0-PROJECT DESCRIPTION

The project envisages monetization of Chinewala Tibba field .The wells in Chinewala Tibba Field

would be connected for production to Gas Collection System (GCS) at Gamnewala, Jaisalmer. From

GCS the gas would then be supplied through GAIL pipeline to RRVUNL (Rajasthan Rajya Vidyut

Utpadan Nigam Ltd.) at Ramgarh, for power generation.

The proposed project comprises following:

A. Up gradation of GCS at Gamnewala, Jaisalmer (Dist.)

Existing Gas Compression facility to be increased to from 200000 SCMD to 500000

SCMD

Hook up of High pressure gas lines

Three Phase High Pressure Separator

Low Pressure Separator

Field Manifold(in between)

Existing Flare line capacity(Box Type)

N2 & CO2 separation plants to be installed.

Gas Compression System for transportation from GCS to GAIL trunk pipeline.

B. Laying of Underground Pipeline: 10” Dia. x 42 KM from Chinewala Tibba (CT) Field, to

the existing GCS at Gamnewala.

C. Production from Wells:

Phase-I: Conversion of exploratory wells viz.CT-1, CT-2 &CT-4 to Development wells for

production.

Phase-II: Development drilling for production from six new wells viz.ICT-1, ICT-2, ICT-3,

ICT-4, ICT-5 & ICT-6.

The proposed activities are planned to be carried out in phases commencing from FY 2018-19

onwards. The planning phase of the project is to start from the FY-2017-18. The project cost is

estimated to be around Rs 283.92 crore.

3.1 Location with Co-ordinates: Location Map of the drilled exploratory wells and

proposed Development wells is given in Figure-1.

The Latitude and Longitude of the drilled exploratory wells are tabulated below:

Wells Latitude Longitude

CT-1 27°26’18.2033"N 70°00'04.6028"E

CT-2 27°27'05.6001"N 70°00'26.9314"E

CT-4 27°30'07.6177"N 70°01'06.6002"E

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The Latitude and Longitude of the proposed development wells are as follows:

Wells Latitude Longitude

ICT-1 27°26'44.4178"N 70°00'37.5971"E

ICT-2 27°25'52.0710"N 70°00'29.8473"E

ICT-3 27°29'47.9111"N 70°01'28.3542"E

ICT-4 27°29'26.9431"N 70°01'15.4633"E

ICT-5 27°30'21.8336"N 70°01'30.5054"E

ICT-6 27°29'36.3555"N 70°01'51.8742"E

Following are the Latitude and Longitude of GCS Gamnewala:

Installation Latitude Longitude

GCS

Gamnewala

27°29'06"N 70°16'41"E

Figure 1- 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

Chinewala Tibba Field.

3.3 Size or magnitude of operation It is proposed to drill 6 development and 3 exploratory wells would be converted to development

wells within the Chinewala Tibba Field to enhance the gas production. The capacity of Gas

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collection system at Gamnewala is to be increased from 200000 SCMD TO 500000 SCMD. Pipeline

of 10” diameter for 42 KM is to be laid for transportation of gas from Chinewala Tibba ML to GCS

at Gamnewala.

3.4 Process Description Flow diagram showcasing the steps involved from drilling of wells to putting the wells on

production is as below,

Drilling Development Wells

Formation Evaluation

Hole section wise (As and when required)

(As & when required)

Casing & Cementation

(Hole Section Wise)

Cased Hole Logging

(Hole Section Wise)

Production Testing

Perforation

(Gun Type)

Put on Production if commercially viable

or abandoned* if tested dry

Open Hole Logging

Formation Testing

Coring (side wall or conventional)

Drill Cutting Analyses

Logging/

Measurem

ent

While

Drilling

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Process Flow Diagram of Gas Collecting Station (GCS) Gamnewala

3.5 Raw Material required

Drilling related material like HSD, Steel (in the form of casings) and Chemicals like

Baryte, Oil well cement and Bentonite would be required. 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 different phases.

Any leftover drilling mud may be utilized for drilling of subsequent wells. Similarly the

tubular will also be reused well to well.

3.7 Availability of water its sources, Energy/power requirement

Facilities available in the Chinewala Tibba Field complex for utilities, occupational health and

safety etc. are discussed as below,

1. Water Supply: Source of water are the Indira Gandhi Canal and nearby tube wells in Ghotaru

and Ramgarh which will be transported by the in house contract for the purpose, to meet the

operational needs, housing and workers camp facility. RO Water/Mineral bottled water will be

used for domestic use.

2. Power Generation: Power requirement at Chinewala Tibba ML will be met through 3 No DG

sets (1250 KVA) for drilling operations. At GCS power from State Electricity Board will be

utilized.

3.8 Quantity of Waste to be generated Presently waste generated from the field is mainly in the form of waste water and minor sludge.

The spent oil so generated is sold to registered recyclers. It is expected approximately 2-3 KL per

day of waste water may be generated due to drilling activities which is treated in HDPE linings

through solar evaporation. As water based mud is used, the drilled cutting so generated is non-

hazardous. The waste water is monitored regularly for any contamination like oil, grease etc.

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4.0-SITE ANALYSIS

4.1 Connectivity:The Chinewala Tibba field falls in Jaisalmer Tehsil and the GCS Gamnewala falls

under Ramgarh tehsil, which are part of Jaisalmer District of Rajasthan.

Chinewala Tibba field and GCS Gamnewala are well connected with Jaisalmer (Nearest railway

station) through metalled road at a distance of around 150 KM. Nearest airport is at Jodhpur which is

around 400 KM.

4.2 Land Form, Land Use and Land Ownership: Chinewala Tibba Field has a total Mining

Lease Area of 114.86 Sq.Km of government owned land. Petroleum Mining Lease (PML) was executed

between Government of Rajasthan & Oil and Natural Gas Corporation Ltd on 21.04.2004 effective

from 15.10.2003 for a period of 20 years vide letter no. 0-12012/44/2004-ONG/D-IV dated 21.04.2004.

No forest land is involved.

4.3 Topography :The Chinewala Tibba field falls in Jaisalmer District, a part of the Great Indian

Thar Desert, is sandy, dry and scorched. The terrain is mostly stony and rocky. The area is barren,

undulating with its famous sand dunes and slopes towards the Indus valley and the Runn of Kutch.

There is no perennial river in the district. The underground water level is very deep. The district lies

in the west of Rajasthan. It is sandy, dry and lacks water making the area inhabitable to human life,

animal, and is harsh for the growth of any form of vegetation. The ridges usually are parallel to the

prevailing direction of the wind .The blown sand forms into shifting sand-dunes.

4.4 Existing land use pattern: Most of the land is barren & remote and is not being purposefully

used for agriculture or industrial means.

4.5 Existing Infrastructure: Presently, maximum of around 50000 M3 per day of gas from Maneherra

Tibba Field is being supplied through GCS at Gamnewala to Gas turbine power plant at Ramgarh. The

present capacity of GCS is 200000 M3 per day. Departmental drilling rig (Electrical) would be utilized

for development drilling.

4.6 Soil Classification: Chinnewala area belongs to Pericratonic shelf, and represents westerly

dipping eastern flank of Indus Basin which is dry and warm and relatively infertile and difficult to

cultivate. Soil can best be classified as desert soil, sand dunes, red desertic ,saline soil of depressions

and lithosols.

4.7 Climatic Conditions: The area being an arid desert region, is prone to extremes in terms of

temperature. The temperature varies greatly from day to night in both summer and winter. The summer

temperature is more than 50 °C while the minimum is 25 °C. The maximum winter temperature is

usually around 23 °C and the minimum is around 5 °C. The average rainfall is 209.5 millimetres

(8.25 in).

4.8 Social Infrastructure available: The area is devoid of any infrastructure and is very rarely being used by the nomads. For the operational

purposes in-house accommodation of mobile bunk houses for company staff and employees will be

utilized. The complex can provide accommodation to around 50 people. Recreational facilities like,

DTH/TV, Outdoor sports etc. are available at site for company staff/employees.

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5.0-PLANNING BRIEF

5.1 Planning concept (type of industries, facilities, transportation etc.) Town and

Country Planning/Development Authority Classification

The project involves development drilling and re-entry in exploratory wells for converting them to

development for production purpose. The project also includes laying of pipeline from these wells to

the Gas Collecting Station. The up- gradation of GCS is also involved for augmentation of production

5.2 Population Projection The project is located in extreme remote border area with hardly any population. The project does not

envisage any increase in population in the area due to the extreme climate conditions and remoteness.

The regular employees of the company and the contractual manpower would be visiting the project

area on rotation basis with alternate ON/OFF shift duty pattern. The project development will not

result in increase of population of the area due to activities involved.

5.3 Land use Planning The land belongs to government that will be acquired on lease for drilling and production. In case of

production from any well the associated land may be permanently acquired.The development drilling

and production would involve improvement of infrastructure in the area by the construction of roads.

5.4 Assessment of Infrastructure Demand Drilling Rig of adequate capacity is available for all the associated drilling operations.

The present infrastructure includes the Gas Collecting Station (GCS) at Gamnewala with handling

capacity of 200000 SCMD .The present production from Manehera Tibba field is 50000 SCMD. The

up-gradation of GCS to increase the capacity to 500000 SCMD would be done by the company.

Power is available from State Electricity Board for the GCS where as for the drilling operations

the power is from the DG sets.

Fire Tender is available at GCS to meet exigencies, morever the up-gradation of GCS involves

the installation of fire ring and other associated fire fighting capability.

Doctor is posted at rig and GCS to take care of the Occupational health (OH) including medical

needs of the staff.

Drill site accommodation and living accommodation at GCS Gamnewala takes care of the

housing needs of the personnel involved in the project.

Adequate environment support from corporate level plus regional labs (in-house), and

outsourced MOEF approved labs provide the necessary support to take care of various statutory

and environmental monitoring needs of the project.

5.5 Amenities / Facilities

The project area in the Chinewala Tibba Field area and at GCS Gamnewala has access to 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 from operational area.

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6.0-PROPOSED INFRASTRUCTURE

6.1 Industrial Area (Processing Area)

The present infrastructure includes the Gas Collecting Station(GCS) at Gamnewala with handling

capacity of 200000 SCMD .The present production from Manehera Tibba field is 50000 SCMD. The

up-gradation of GCS would increase the capacity to 500000 SCMD.

A. Up gradation of GCS at Gamnewala, Jaisalmer (Dist.)

Existing Gas Compression facility to be increased to from 200000 SCMD to 500000

SCMD

Hook up of High pressure gas lines

Three Phase High Pressure Separator

Low Pressure Separator

Field Manifold(in between)

Existing Flare line capacity(Box Type)

N2 & CO2 separation plants to be installed.

Gas Compression System for transportation from GCS to GAIL trunk pipeline.

B. Laying of Underground Pipeline: 10” Dia. x 42 KM from Chinewala Tibba ML, to the

existing GCS at Gamnewala.

C. Production from Wells:

Phase-I: Conversion of exploratory wells viz.CT-1, CT-2 &CT-4 to Development wells for

production.

Phase-II: Development drilling for production from six new wells viz.ICT-1, ICT-2, ICT-3,

ICT-4, ICT-5 & ICT-6.

6.2 Residential Area (Non Processing Area)

Residential areas for the company staff/ employees of Drilling Rig and GCS already exists at GCS

Gamnewala.

6.3 Green Belt

Most of the activities are sub surface in nature and will not have any impact on the surface

surrounding area. However adequate green belt would be further expanded at GCS Gamnewala.

6.4 Social Infrastructure ONGC carry out various CSR activities for the benefit and betterment of the local people in the project

region, like providing free medical facilities, fire tender services to address any fire related eventuality

of the region, drinking water through ring wells, furniture and books for the schools, public facilities /

infrastructure development etc. The Company plan to contribute in the following sectors as part of its

CSR activities:

Education

Health

Public Facilities / Infrastructure

Environment

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6.5 Connectivity

The proposed project area including the Chinewala Tibba Field and GCS Gamnewala are well

connected to Jaisalmer with well-maintained metalled roads. The district headquarter is around 150

KM from the field area .The nearest airport is Jodhpur, which is around 400 KM from the project

area.

6.6 Drinking Water Management Source of water for drinking purpose is canal water and on some occasion from tube wells, which is

treated by RO plants to make it potable. At times bottled mineral water is also used for drinking

purpose.

6.7 Sewerage System

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

6.8 Solid Waste Management

Solid waste is mainly drilled cuttings which is non-hazardous as the mud used is water based. The

drilled cutting is washed and filled in HDPE lined pits.

6.10 Power Requirement & Supply / Source

Power requirement for Drilling rig is met through DG sets and for GCS Gamnewala through state

electricity board and DG sets as back up if required.

7.0-REHABILITATION AND RESETTLEMENT (R&R) PLAN

7.1 Proposed development and exploratory / appraisal well drilling locations and approach roads are

devoid of population, hence no R&R plan is applicable.

8.0-PROJECT SCHEDULE & COST ESTIMATES

The tentative schedule of the proposed project is as under:

Activity Period

Conversion of Exploratory wells CT-1,CT-2 and CT-4 to

development wells for production purpose.

2017-18(Last Quarter) & 2018-19

Up gradation of facilities of Gas Collection

Centre(GCS) for increasing capacity from 200000

SCMD to 500000 SCMD; and

Laying of 10” Pipeline -42 KM for transporting gas

from the Chinewala ML to Gas Collecting Station

(GCS) at Gamnewala.

Development drilling of 2 wells (1st Phase) for production. 2019-20

Development drilling of 4 wells (2nd Phase) for production. Beyond 2019-20

The total cost estimates of the project including CAPEX and OPEX is Rs 283.92 Crore.

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9.0-ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS)

Chinnewala Tibba field, one of the best fields discovered so far in Jaisalmer Basin with multiple

pays in Pariwar and Lower Goru formations have good production potential. The quality of gas

like better methane (%) and calorific value has been considered for development. The field has

established total GIIP reserves of 2439.2 MMm3, within normal pressured sandstone reservoirs.

On initial testing, four exploratory wells have flowed commercial hydrocarbon gas with minor

liquid (condensate/light oil & water).

The proposed development plan include re-entry and completion of existing exploratory wells to

development wells; and drilling of 6 vertical development wells for production purpose.

Processing facilities to be upgraded at GCS Gamnewala to process the gas from the existing wells

with the provision for installation of additional equipment if required for processing increased gas

from additional development wells.

The estimated cost for Chinnewala Tibba field development which includes the cost of re-entering

the drilled wells, (CT#1, CT#2 & CT#4), drilling of six new development wells, laying 42 KM

pipeline (10”) from Chinnewala Tibba field to Gamnewala GCS, upgradation of GCS, Gamnewala,

flow line /pipe line, its laying is Rs.283.92 Cr

The gas production from the proposed project in Chinewala Tibba field will not only help the

region in securing the energy demand but also will generate direct and in-direct opportunities for

the locals and help in their economic development.

Financial Benefits: Additional production of gas will not only save the foreign exchange but also

benefit in generation of revenue to the State Government.

Social Benefit: The proposed activities in the field will result increase in the production of

natural gas , which would help 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 mobile health

check-up vans , fire tender services to address eventualities of the region, drinking water through

ring wells, furniture and books for the schools, , 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 Management Plan (EMP): Proper EMP would be implemented to take care of

various environmental components viz. air, water, land, noise, soil and biological aspects of the

proposed project region.