OIL gets green nod for Rs 220 cr drilling project in Jaisalmer

State-run Oil India Ltd (OIL) has received environment clearance for Rs 220-crore development drilling project in Jaisalmer district of Rajasthan.

The company received the green nod for development drilling of 20 wells in Baghewala mining lease block in Jaisalmer district.

OIL had discovered natural gas in Jaisalmer sub-basin of Tanot fields and heavy oil in the Bikaner-Nagaur sub-basin in early nineties. Now, the company has proposed to undertake development drilling of 20 wells in the Baghewala mining lease block.

"Based on the recommendation of the Expert Appraisal Committee (EAC), the ministry has accorded environment clearance to the OIL for development drilling 20 wells in Jaisalmer," a senior government official said.

The approval to the Jaisalmer project has been given subject to certain conditions. The total project cost is estimated to be Rs 220 crore, the official said.

OIL has over one lakh sq km of petroleum exploration licence/mining lease areas, most of it is in North Eastern parts of India, which accounts for its majority of crude oil and gas production.

Rajasthan is the other major gas producing area, contributing to 10 per cent of its total gas production.