Arunachal grants exploration licences in seven new blocks to Oil India

The Arunachal Pradesh government has granted licences to PSU Oil India Limited for exploration of petroleum resources in seven new blocks in the state, an official said on Thursday.

The state government has also given its permission to the company for exploration in the extended area of the Jairampur block in Changlang district, the official said.

Chief Minister Pema Khandu handed over the licences to the company's chief general manager Inderjit Baruah and his team.

In a meeting with Khandu in September, the officials of the petroleum major had urged the state government for early issuance of the forest clearances for the identified blocks so that it could obtain the environmental nod from the Centre to commence survey and exploration activities.

The company hailed the state government for completing the process of awarding licences within a short span of time, which enables Oil India to start exploration activities from this month.

The blocks awarded to the company are spread across Changlang, Tirap, Lohit, East and West Siang and Lower Dibang Valley districts.

Khandu requested the PSU to keep in touch with the local administration during exploration works so that people in the surrounding area of these blocks can be intimated about the projects in advance and precautionary measures can be taken, a CMO release said.

He also said that a part of the royalties, received from such projects, should be utilised for development and welfare of the local people and asked chief secretary Naresh Kumar to prepare a plan for this.

"Local people of the district where such projects are being taken up should be benefited," Khandu said.

According to the official, exploration in each block will be conducted in two phases.

"The total exploration period is for 8 years and each phase is of about 3 years with a provision for additional one year extension," the official said.

In the long run, discoveries from these blocks would help enhancing domestic production of petroleum and reducing imports, the release said.

In order to accelerate exploration activities in the country, the Centre had offered 55 blocks spread across offshore and onshore areas under the Hydrocarbon Exploration and Licensing Policy (HELP) and Open Acreage Licensing Policy (OALP).

In the bidding process, Oil India bagged nine blocks and seven of them falls in Arunachal Pradesh.

In addition, the Centre also awarded the Jairampur extension block, measuring an area of 23.25 sq km in Changlang district to the company on a nomination basis.

Meanwhile, Oil India officials said that the detail project report for the proposed pipeline from Kumchai (Kharsang) in Changlang district to Duliajan in Assam for transportation of natural gas has been submitted to the state government.