Cairn india to spend $150 mn on 10 exploratory wells in Andhra
Cairn India will be taking up exploratory and appraisal drilling of ten wells in Palar block at the coast in Nellore district Andhra Pradesh with an investment outlay of $150 million. An Expert Appraisal Committee (EAC) under the Ministry of Environment, Forests and Climate Change examined and gave its nod to the proposal under Coastal Regulatory Zone (CRZ) perspective for drilling to Cairn India.
The project was granted environmental clearance in 2011. The PR-OSN-2004/1 block has been awarded by the government during NELP-VI licensing round in 2007 for hydrocarbon exploration. Exploration activities will be carried out as per the Production Sharing Contract (PSC) signed between CIL and the Centre, the minutes of the meeting of EAC held last month said.
“Estimated project cost: $15 million per well...The EAC, after deliberations and verifying the facts regarding location of the exploratory/appraisal drilling wells, plotted by the project proponent (Cairn India), approved the project from CRZ perspective, subject to the terms and conditions stipulated by the APCZMA (Andhra Pradesh State Coastal Zone Management Authority).