US-based Hardy Oil seeks nod for five more offshore oil wells in Cauvery basin

CHENNAI: Hardy Oil Exploration Production Inc (HEPI) has sought permission from the Union Environment, Forest, and Climate Change Ministry to drill five additional offshore hydrocarbon wells in the Cauvery basin off the Mayiladuthurai coast.

According to the proposal it submitted, the US-based company said it was seeking to increase hydrocarbon production by planning five more wells within an existing offshore area spread over around 81 sq km.

The extracted hydrocarbons are proposed to be transported from the wells to an existing floating storage and offloading facility through subsea pipelines, said HEPI, adding that as per its estimate, the additional production from the proposed wells is around 3,000 barrels per day.

The joint venture that the company formed along with State-owned ONGC and Invenire Petrodyne Limited has been awarded the PY-3 field. The field was first brought onstream in 1997 but was shut in July 2011, before production revived after the implementation of a multi-phase, revised Field Development Plan (FDP).

Industry reports said the field produces high-quality sweet light crude.
Meanwhile, environmental organisations and political parties opposed the proposal, urging the Centre and Tamil Nadu government not to grant approval.

Poovulagin Nanbargal stated that drilling activity could adversely affect the marine environment and ecosystem, and impact the livelihood of fishermen in the region. Pointing out that the proposed drilling area falls under CRZ-IVA and hence comes under the purview of the Tamil Nadu State Coastal Zone Management Authority (TNSCZMA), the organisation urged the State government not to grant the required approval.

PMK president Anbumani Ramadoss also opposed the proposal, warning that additional oil and gas wells in the Bay of Bengal could severely affect marine resources and fishermen's livelihoods. He alleged that existing wells in the region had already caused environmental damage and said further drilling could lead to damage on an incalculable scale.

Anbumani said the Cauvery delta districts, including Mayiladuthurai, were declared a Protected Agricultural Zone after the PMK's efforts to safeguard agriculture and the environment from hydrocarbon projects. He alleged that oil companies were now attempting to take up projects just outside the protected zone's boundaries.

He urged both the central and State governments not to permit the proposed wells and called for the closure of existing wells in the area. Anbumani also noted that approval from the Tamil Nadu government and TNSCZMA would be mandatory even if the Centre grants environmental clearance.