Energy major Cairn India has received environment clearance to produce natural gas, as well as raise crude oil production from its Rajasthan block by 50 percent to 300,000 barrels per day.
"It is noted that the proposal is for augmentation of hydrocarbon production (from 200,000 bpd to 300,000 bpd) and 165 mmscfd (million standard cubic feet per day) natural gas in RJ-ON-90/1 block, Barmer and Jalore districts, Rajasthan," the Ministry of Environment and Forests said in the Cairn order posted on its website.
"The Ministry of Environment and Forests hereby accords environmental clearance to the above project," the order added.
According to the proposal, Cairn will develop 205 well pads for additional production and evacuation infrastructure.
The hydrocarbon resource potential of the block is estimated at 7.3 billion barrels of oil equivalent (boe) and the estimated cost of the project is Rs.16,000 crore, the ministry said.
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Cairn will have to comply with specific conditions like that of stack emission from various units conforming to prescribed standards and implementing a leak detection and repair programme.
Moreover, waste water is to be treated and a green belt developed in at least 33 percent of the plant area, to mitigate the effects of fugitive emissions.
Cairn will also have to set aside Rs.300 crore for undertaking Enterprise Social Commitment based on local needs.
The Rajasthan block produced 181,894 barrels per day of crude oil and 8 million standard cubic feet per day of gas in the April-June period.
State-run explorer Oil and Natural Gas Corp (ONGC) holds 30 percent interest in the Rajasthan block.