oilex receives nod from the environ ministry

Redevelopment of Cambay field: Oilex receives nod from the environment ministry

June 17: The environment ministry has given the go-ahead to Australia's Oilex Limited to carry out re-development of the Cambay field by drilling 60 new appraisal wells in the field as well as expand and modernise the existing Gas Collection Station (GCS) located at Khambhat in Gujarat. The wells will be drilled with a target depth ranging from 1,500-3,000 metres. The GCS will have installed capacity to process about 2,385 cubic metres of crude oil per day, which includes 15,000 barrels of oil per day and 2.83 million standard cubic metres of natural gas per day. The approximate area of the field is 161 sq km. None of the proposed wells will be drilled inside the Coastal Regulation Zone (CRZ). Land measuring 1.44 hectares will be required for each of the drilling locations, which will be acquired on lease. The drilling sites will have space for rig foundations, cellars, mud systems, casing storage yards, offices, drill cuttings and waste water collection pits and test flare systems.
While a public hearing on the proposal was held on February 29, 2008, an Expert Appraisal Committee (EAC) gave a clean chit to the drilling programme on April 15, 2008. The company is now obliged to pay compensation for acquiring private land as per the norms prescribed by the government. The company is also required to follow environmental norms with regard to other issues, such as drilling waste water -- including drill cuttings -- and wash water, which has to be collected in disposal pits lined with High Density Polyethylene (HDPE) lining. Notably, no further expansion or modification in the project can be carried out without prior approval of the environment ministry.

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