CHENNAI: In a major development, Vedanta Limited and ONGC have proposed to drill 341 wells to hunt for hydrocarbon reserves in and around Tamil Nadu (offshore and onshore). Large tracts of lands in the Cauvery delta region is likely to come under the pump if the proposals are approved.
In the last two months, four sets of separate applications have been filed with the Union Environment Ministry, seeking Terms of Reference (ToR) for conducting Environment Impact Assessment (EIA) studies. Of the 341 wells, 67 are proposed by public sector oil major ONGC while the remaining 274 are by Cairn Oil and Gas, a vertical of Vedanta.
As per records available with Express, Vedanta has sought an exemption from holding public hearings. The hearings, where general public are allowed to express their views on such projects, is a statutory requirement under EIA Notification, 2006. The company is planning to invest a whopping Rs 13,538 crore in the project.Last year, Vedanta was allotted two hydrocarbon blocks in Tamil Nadu as part of Open Acreage Licensing Policy (OALP). One block covers an area of 2,574 sq.km consisting of 142 sq.km of Nagapattinam (Tamil Nadu), 39 sq.km of Karaikal (Puducherry) and 2,393 sq. km of the Bay of Bengal sea.
The second block measures 1,794 Sq.km consisting of 139 sq km of Villupuram, two sq.km of Puducherry and 1,654 sq.km of sea portion of Bay of Bengal. The total command area to carry out necessary studies will be 4.37 lakh hectares.Ecologists have expressed concerns over environmental impacts of such a project. The Vendanta’s block where drilling will happen, according to records, is just 0.49 km away from the ecologically sensitive Pichavaram Mangrove Forest. Also, four important rivers including the Cauvery and several canals flow within the block.
The Bay of Bengal, where blocks are located, is prone to cyclones. “The coastal stretch between Marakkanam and Nagapattinam, where the two offshore blocks of Vedanta are situated, is a popular fishing ground for local communities as it has shallow waters with depth varying between 200-500 metres,” says researcher K Ayyanathan, who has written a book on hydrocarbons.
“Drilling activity will drive away fish. It will also affect the soil substrata and change the characteristics of the coastline as there will be leaks. The subterranean water bodies or aquifers will get contaminated,” claims Ayyanathan. As per the Revenue Sharing Contract, Vedanta proposes to carry out oil and gas exploration (including seismic surveys, exploratory and appraisal drilling) over the next 10-12 years. In case commercial quantities of hydrocarbon reserves are established, then development and production of oil and gas will be carried out in Phase-II.
When contacted, a Vedanta Cairn spokesperson told Express via e-mail, “Cairn believes in protecting the environment in its areas of operation. All environmental safeguards are taken in line with applicable statutory requirements. We are currently in planning phase for carrying out exploration activities, and the drilling of Exploratory & Appraisal wells in the OALP blocks in Cauvery basin. The well-drilling execution is dependent on the assessment of subsurface data.
The environment ministry has also been swift in granting approvals for ONGC. An application for onshore development and production of oil and gas from 27 wells in two fields (Bhuvanagiri & Periyakudi fields) and expansion in Cauvery Basin (in Cuddalore and Tiruvarur districts) was submitted by ONGC on February 27 and ToR was granted by March 31.
ONGC proposes to invest Rs 5,150 crore in the project. A total of 40 wells are proposed to be drilled in this block, of which 35 wells will be located in Cuddalore and five in Nagapattinam. As per ONGC officials estimate, 1.82 hectares per well is to be acquired on short term lease/rent.