Agrarian and underdeveloped Bihar could be India's next big hope for oil and natural gas with British exploration major Cairn Energy Search Ltd (CESL) set to begin operations in the state towards the end of this month.
'Oil exploration work is likely to start soon, hopefully by the year-end or early next year,' said Rameshwar Singh, secretary of Bihar's department of mines and geology.
'If the exploration proves fruitful, it will signal a turnaround for Bihar,' Singh told IANS in an interview.
The central and state governments have been eying Bihar's potential resources for several years following several positive studies. India imports some 70 percent of its crude oil needs.
CESL, which has been given a seven-year license, will begin its operations in the Purnea basin comprising 13 districts spread over a 15,500 sq. km. after first building bridges with the local populace.
'The state government is ready to provide them support for the project to go through smoothly,' Singh said.
The Edinburgh-based CESL had proposed the project two years ago but it got delayed due to various reasons.
'The project was cleared by the defence ministry a month ago and is now with the Geological Survey of India and the Atomic Energy Department. They are expected to clear it any day now,' Singh added.
According to independent estimates, reserves in the Purnea basin could be as high as 465 million tonnes of crude and natural gas.
Experts say the reserves can be tapped after drilling to 4,400 metres. The state government will get 10 percent royalty for every tonne extracted.
Forty percent of Bihar's 83 million population lives below the poverty line, the highest in India.
'Oil exploration work is likely to start soon, hopefully by the year-end or early next year,' said Rameshwar Singh, secretary of Bihar's department of mines and geology.
'If the exploration proves fruitful, it will signal a turnaround for Bihar,' Singh told IANS in an interview.
The central and state governments have been eying Bihar's potential resources for several years following several positive studies. India imports some 70 percent of its crude oil needs.
CESL, which has been given a seven-year license, will begin its operations in the Purnea basin comprising 13 districts spread over a 15,500 sq. km. after first building bridges with the local populace.
'The state government is ready to provide them support for the project to go through smoothly,' Singh said.
The Edinburgh-based CESL had proposed the project two years ago but it got delayed due to various reasons.
'The project was cleared by the defence ministry a month ago and is now with the Geological Survey of India and the Atomic Energy Department. They are expected to clear it any day now,' Singh added.
According to independent estimates, reserves in the Purnea basin could be as high as 465 million tonnes of crude and natural gas.
Experts say the reserves can be tapped after drilling to 4,400 metres. The state government will get 10 percent royalty for every tonne extracted.
Forty percent of Bihar's 83 million population lives below the poverty line, the highest in India.
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