Key Quantitative Figures
- Cumulative investment in PY-1 Field and associated infrastructure: Approximately ₹3,400 crore
- Length of existing subsea pipeline: Approximately 56-57 km
- Number of proposed additional development wells: 4 wells
- Subsurface reservoir target depth: Approximately 3-4 km below seabed
- SUN offshore platform well slot capacity: 9 well slots
- Local employment percentage: Approximately 80% of employees and contractors sourced from local community
Dates of Action
- Terms of Reference (ToR) granted by MoEF&CC: August 21, 2025
- Environmental Impact Assessment (EIA) and marine studies completed and submitted to Ministry: June 1, 2026
- Disclosure date: August 19, 2026
Parties Involved
- Hindustan Oil Exploration Company Limited (HOEC) - Operator
- Government of India - Block awarding authority
- Directorate General of Hydrocarbons (DGH) - Regulatory approval
- Ministry of Petroleum and Natural Gas (MoPNG) - Regulatory approval
- Ministry of Environment, Forest and Climate Change (MoEF&CC) - Environmental clearance authority
- Government of Tamil Nadu - State engagement
- Local communities and fishing communities - Stakeholders
Purpose and Rationale
The proposed development program aims to drill four additional development wells within the existing PY-1 Offshore Block to restore/re-establish production from the field toward originally sanctioned production levels following natural reservoir depletion. The wells will utilize existing infrastructure without increasing the sanctioned production level of the field.
Infrastructure Details
The PY-1 Field comprises existing offshore wells, an unmanned SUN wellhead platform, and approximately 56-57 km subsea pipeline connecting to the company's existing onshore gas processing terminal in Tamil Nadu. The SUN platform was constructed with nine well slots, with only part of the capacity utilized. No new offshore production platform or subsea export pipeline is proposed.
Environmental Compliance Status
HOEC has applied through the PARIVESH portal for requisite Environmental Clearance and CRZ Clearance. The company received ToR on August 21, 2025, completed comprehensive EIA and marine environmental studies through qualified experts, and submitted the report to the Ministry on June 1, 2026. The company is currently responding to queries from competent authorities through the prescribed regulatory process.
Historical Context
HOEC has been operating the PY-1 Field since April 2006. Environmental and CRZ approvals have previously been obtained for various phases of field development, including offshore drilling, onshore gas processing facility, and subsea pipeline. The company continues environmental monitoring and submits compliance reports to competent authorities.
Community Engagement
HOEC has a long operating presence in Tamil Nadu with approximately 80% of employees and contractors sourced from the local community. The company has undertaken various community development and welfare initiatives, including support for local infrastructure and community facilities.
Future Commitments
HOEC will undertake drilling only after obtaining requisite statutory clearances and will comply with all conditions stipulated by competent authorities. The company intends to engage proactively with Government of Tamil Nadu authorities to provide technical and environmental information and address concerns.
Financial Impact Assessment
The media report does not have any material impact on the company's operations at present. Financial impact of the drilling program will be subject to receipt of all necessary approvals.