Permitting Exploration of Hydrocarbon from Marakkanam to velankanni
Hydrocarbon extraction - Marakkanam to velankanni (translated from "Tamil Hindu" article)
In the month of June this year, it is learnt that multinational corporations are going to get
the nod to take Hydrocarbon in 55 new circles in the country with 100% FDI. Govt has finalized
the auction procedures without much noise and the same is going on from Jan 19. Recently in a reply
to a question in Parliament, Minister for Petroleum has said that Hydrocarbon projects are not
working anywhere in Tamilnadu state and though his statement is factually not wrong, under a new
permit system called HELP (Hydrocarbon Exploration and Licensing policy), it has now been made
possible to explore any energy from permitted areas. Licensing for the same is happening right now
and there is credible evidence of Hydraulic Pressure test being done in the area already.
India is in the third place of largest Petroleum consumption countries after US and China
and India has to depend 80-85% of it on imports alone. For the purpose of augmenting indigenous
production of Energy,the country is trying the eco unfriendly and dangerous methods that includes
Hydraulic pressure method to take out Methene Shale gas and oil in Coal bed areas. In the earlier
version of NELP (New Exploration Licensing Policy), permission was given to identify energy fossil
in the lower crust of land. Under the policy companies like Reliance Essar were given the go ahead
to take oil in land and sea beds.
Modi government gave away licenses in "Discovered in small marginal fields" to private
companies in 65 places for energy production with the aim of increasing the local production
substantially before 2022. In April 2017, Such Licenses were liberally given to companies including for Neduvasal area in Cauvery Delta.
NELP system was modified with a still more liberal single licensing model called HELP
and now it is now further liberalized to bring Open Acreage Licensing Policy - QALP.
The government has started the processes to sell these identified areas on revenue sharing
basis to interested parties from July 2017. By this action, the existing methodology of identifying
and auctioning which are hitherto in the domain of Directorate of Hydrocarbon has been scrapped.
As per this policy, getting separate licenses for exploration of Hydrocarbon, methene, shale oil and
shale gas has been modified. Under the new HELP-OALP licensing, a single license is given
for all categories of explorations.
All potential areas were identified and the international tenders to start surveys and exploration
in the places have been issued by Directorate of Hydrocarbon (DGH) on Jan 19 2018. All
bidders including 100% foreign direct companies can apply for License before April 3rd and the
permission to start operation for the selected firms will be issued in June.
In the newly announced 10 Circles, most are in environmentally sensitive places like
Himalayas,Ganges, Cauvery, Godaveri, Damodar gombe Kutch. Even small ecology
related change in these areas will have disastrous environmental consequences. So, farmers
and environmentalists fear about the impact of these projects.
Mannargudi V Sethuraman, one of active leaders of Tamilnadu Science forum and the
man who is in the forefront of movement against Methene and shale gas says: " We cannot find
fault with utilization of energy resources for country's sake. But it is also equally important from where
the resources are tapped. It would be utterly reckless to disturb places like Cauvery basin for
the purpose of extracting Hydrocarbon as this has been a place where agriculture is taking place
from time immemorial. This was the reason for permanent ban imposed by the then Chief minister
of Tamil Nadu J Jayalalitha based on a recommendation by an expert committee.
Since then ONGC has been telling the people that they won't operationalise any more energy project
in the cauvery delta. But the fact is in places like Cuddalore and Paragipettai where ONGC has dropped extraction work, a private enterprise HOEL is extracting oil and natural gas. So there is a real possibility
that Govt run ONGC will minimize its operations to make way for private sector to have a free run in future.
Only with that purpose in mind, the government is coming out with a simple and corporate friendly policy
like HELP to dish out licenses in single window clearances for extracting shale gas,etc. It is also very
hazardous for ecosystem to permit highly dangerous methods like hydraulic pressure.Due to the
indiscriminate use of this method fertility of land and water will get affected. Already the Delta is
severely stressed out due to the deficient and erratic flow of cauvery and entering of sea water.
The situation will be further aggravated if all these projects are given blanket permission without
taking into consideration these adverse factors."
In the month of June this year, it is learnt that multinational corporations are going to get
the nod to take Hydrocarbon in 55 new circles in the country with 100% FDI. Govt has finalized
the auction procedures without much noise and the same is going on from Jan 19. Recently in a reply
to a question in Parliament, Minister for Petroleum has said that Hydrocarbon projects are not
working anywhere in Tamilnadu state and though his statement is factually not wrong, under a new
permit system called HELP (Hydrocarbon Exploration and Licensing policy), it has now been made
possible to explore any energy from permitted areas. Licensing for the same is happening right now
and there is credible evidence of Hydraulic Pressure test being done in the area already.
India is in the third place of largest Petroleum consumption countries after US and China
and India has to depend 80-85% of it on imports alone. For the purpose of augmenting indigenous
production of Energy,the country is trying the eco unfriendly and dangerous methods that includes
Hydraulic pressure method to take out Methene Shale gas and oil in Coal bed areas. In the earlier
version of NELP (New Exploration Licensing Policy), permission was given to identify energy fossil
in the lower crust of land. Under the policy companies like Reliance Essar were given the go ahead
to take oil in land and sea beds.
Modi government gave away licenses in "Discovered in small marginal fields" to private
companies in 65 places for energy production with the aim of increasing the local production
substantially before 2022. In April 2017, Such Licenses were liberally given to companies including for Neduvasal area in Cauvery Delta.
NELP system was modified with a still more liberal single licensing model called HELP
and now it is now further liberalized to bring Open Acreage Licensing Policy - QALP.
The government has started the processes to sell these identified areas on revenue sharing
basis to interested parties from July 2017. By this action, the existing methodology of identifying
and auctioning which are hitherto in the domain of Directorate of Hydrocarbon has been scrapped.
As per this policy, getting separate licenses for exploration of Hydrocarbon, methene, shale oil and
shale gas has been modified. Under the new HELP-OALP licensing, a single license is given
for all categories of explorations.
All potential areas were identified and the international tenders to start surveys and exploration
in the places have been issued by Directorate of Hydrocarbon (DGH) on Jan 19 2018. All
bidders including 100% foreign direct companies can apply for License before April 3rd and the
permission to start operation for the selected firms will be issued in June.
In the newly announced 10 Circles, most are in environmentally sensitive places like
Himalayas,Ganges, Cauvery, Godaveri, Damodar gombe Kutch. Even small ecology
related change in these areas will have disastrous environmental consequences. So, farmers
and environmentalists fear about the impact of these projects.
Mannargudi V Sethuraman, one of active leaders of Tamilnadu Science forum and the
man who is in the forefront of movement against Methene and shale gas says: " We cannot find
fault with utilization of energy resources for country's sake. But it is also equally important from where
the resources are tapped. It would be utterly reckless to disturb places like Cauvery basin for
the purpose of extracting Hydrocarbon as this has been a place where agriculture is taking place
from time immemorial. This was the reason for permanent ban imposed by the then Chief minister
of Tamil Nadu J Jayalalitha based on a recommendation by an expert committee.
Since then ONGC has been telling the people that they won't operationalise any more energy project
in the cauvery delta. But the fact is in places like Cuddalore and Paragipettai where ONGC has dropped extraction work, a private enterprise HOEL is extracting oil and natural gas. So there is a real possibility
that Govt run ONGC will minimize its operations to make way for private sector to have a free run in future.
Only with that purpose in mind, the government is coming out with a simple and corporate friendly policy
like HELP to dish out licenses in single window clearances for extracting shale gas,etc. It is also very
hazardous for ecosystem to permit highly dangerous methods like hydraulic pressure.Due to the
indiscriminate use of this method fertility of land and water will get affected. Already the Delta is
severely stressed out due to the deficient and erratic flow of cauvery and entering of sea water.
The situation will be further aggravated if all these projects are given blanket permission without
taking into consideration these adverse factors."
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