State-run Oil India Ltd has got environment clearance for drilling 20 wells in three blocks in Jaisalmer, Rajasthan for production of 1 mmscmd gas at an estimated cost of Rs 96 crore.

The wells will be drilled in Dandewala, Bagitibba and Tanot mining lease blocks in Tanot village in Jaisalmer.

The cost of the project is Rs 96 crore and the depth of drilling varies 1,200-2,200 meters. Total expected gas production from well would be 1 mmscmd (million metric standard cubic meter per day).

The gas produced from these three blocks would be brought to the common locations for processing at Dandewal Gas Processing Complex. Oil India, which had applied for the environment clearance (EC) in June this year, got the approval on September 3.

Among some conditions that Oil India is required to comply with, the official said the company should monitor air quality near the closest human settlement, make arrangement for control of noise from the drilling activity, prepare oil spillage scheme and obtain environment safety certificate after the completion of the drilling.

The company has also been asked to take measures after completion of drilling process by well plugging and secured enclosures, decommissioning of rig upon abandonment of the well and drilling site should be restored to the original condition. In the event that no economic activity of hydrocarbon is found, the company has been asked to implement a full abandonment plan for the drilling site in accordance with the applicable Indian petroleum regulations.

Selection of new head still undecided
Meanwhile, for the third time in 10 months, government headhunter PESB has not found any of the applicants suitable for the top job at Oil India.

The Public Enterprise Selection Board (PESB) yesterday interviewed ten candidates, including the firm's Director (Finance) Rupshikha Saikia Borah, to select a new chairman and managing director of OIL, the nation's second-biggest state-owned oil and gas explorer.

After the interview, PESB in a notice said, "the Board decided to see more candidates." Besides Borah, PESB said it interviewed Indraprastha Gas Ltd Managing Director Narendra Kumar, FACT Chairman Jaiveer Srivastava, GAIL   Executive Director Gajendra Singh, PGCIL Director (Personnel) R P Singh and five others. PESB had in November last year found Borah and five others, including Neyveli Lignite Corp Ltd Director (HR) S K Acharya, Air India Director (Personnel) N K Jain and State Trading Corp Director (Marketing) Rajiv Chopra unsuitable to replace S K Srivastava when he retired on June 30, 2015.

After Srivastava retired on June 30, the Oil Ministry named senior bureaucrat U P Singh as the acting Chairman and Managing Director of OIL. Singh, who is Additional Secretary (Exploration) in the Ministry of Petroleum and Natural Gas, will continue to hold the responsibility till further orders.

OIL has five full-time board members, including the chairman and managing director. None of the other three directors applied. Director (exploration) S Mahapatra superannuates on March 31, 2017 and did not have the requisite two years of service left for being considered.

The firm's director (HR) Biswajit Roy was appointed to the board in May this year while director (operations) P K Sharma came over a month later.