Vedanta gets conditional NOC to drill 20 onshore oil, gas wells in Andhra Pradesh

The Andhra Pradesh government has issued a conditional no-objection certificate (NOC) to Vedanta Limited for drilling 20 onshore oil and gas wells in Krishna district, according to a government order.

Vedanta’s Cairn Oil & Gas division had sought permission under India’s Discovered Small Field (DSF) Policy, 2018, after being awarded the contract to develop an onshore oil and gas field in the area, the order said.

The company had requested an NOC for drilling wells at 35 locations in the block located in various village limits for Onshore Oil and Gas Development and Production, from the Water Resources Department of Andhra Pradesh, as the Bandar Canal passes through the centre of the proposed block.

“After careful examination of the matter, the government hereby issues ‘No Objection Certificate’ to M/s Vedanta Limited (Cairn Oil & Gas Division), Mumbai, for drilling 20 numbers of wells… subject to terms and conditions,” the order said.

Officials from the Water Resources Department, including the engineer-in-chief (irrigation), the chief engineer of the Krishna Delta System and the Krishna district collector, have been directed to take necessary action.

The government clarified that the NOC was issued only from an irrigation standpoint and is temporary in nature. Vedanta must obtain all other statutory approvals before starting operations.

The order also said no water may be drawn from irrigation canals, including the Bandar Canal, the Krishna Delta System canal network, drainage systems, ponds, reservoirs or any other surface water sources.

Cairn Oil & Gas is India’s largest private oil and gas exploration and production company, accounting for about a quarter of the country’s domestic crude output. The company has said it aims to raise its contribution to 50% through sustainable and responsible practices.