Oil India Ltd (OIL) started its drilling operation on Saturday by spudding the well (Kumchai-15) at Kumchai in Arunachal Pradesh (Loc KUAR, TD: 4380 m, Girujan Prospect) in presence of Arunachal Pradesh Minister Kamlung Mossang, Deputy Commissioner of Changlang district, EAC and Circle Officer of Diyun, Executive Director (HR&A), OIL and other senior officials from OIL.
OIL received PML re-grant for an area of 427.058 sqkm in May 2018 where work over operations have already been started in old wells.
Kumchai field reached peak production of oil around 140 KLPD and gradually came down to around 20 KLPD as no operational activities such as workover or any operations were not allowed due to non-availability of PML.
Presently, OIL is earning revenue around Rs 20 crore every year. However, it is expected that more revenue could be earned by establishing more oil/gas in coming wells adding more economy to the nation.
Presently, nine locations are planned to be drilled in Kumchai field including both exploratory and development locations and have been released by OIL management. Further, OIL is planning to set up a gas based power plant (11.5 MW) at Kumchai area in near future.
OIL received the PEL grant for 952 sqkm in November, 1963 on nomination basis in Tirap and Lohit districts of Arunachal Pradesh.
Seismic survey was started in the month of February 1964 FY and subsequently Well No Kumchai-1 (Loc NUA) was spudded in on 15.09.77 for a deeper prospect in TipamFormtion. At well depth 5460 m, blow out happened due to complicated subsurface problem and finally the well had to be abandoned. However, presence of oil was established during blow out in this well.
This fact led to further geoscientic studies with more detail seismic in the area. As a result of hydrocarbon indication in the first well Kumcahi-1, PML (Petroleum Mining Lease) grant was received w.e.f. 27.11.83 for 20 years from State Government of Arunachal Pradesh and subsequently, OIL drilled another 13 wells in Kumchai field during 1987 to 1993.
In 1995, OIL had to surrender Kharsang Oilfield (within Ningru PML) to a JV of M/s. GeoEnpro as per Govt of India Policy and hence 11 Sqkm was carved out from Ningru PML and remained 540.668 Sqkm for Ningru PML which continued upto 2003. During regrant of PML in 2003, the issue of Forest clearance as per F(C) act 1980, payment of huge NPV came up for which OIL had to approach the Supreme Court of India in 2014. Further OIL had to carve out another 113.61 Sqkm from its PML area due to presence of Namdapha Reserve Forest area and remained 427.058 sqkm.