Thursday, 24 December 2015

ONGC to invest Rs. 3500 cr for developing 3 CBM blocks

"We see a peak production of 3.2 million standard cubic meters per day of gas from the three CBM blocks," ONGC's Director (Onshore) Ved Prakash Mahawar told reporters in New Delhi.


Oil & Natural Corp. Ltd. (ONGC) on Wednesday said that it will invest INR 3,500 crore in three coal-bed methane (CBM) blocks in eastern India. 
ONGC2
"We see a peak production of 3.2 million standard cubic meters per day of gas from the three CBM blocks," ONGC's Director (Onshore) Ved Prakash Mahawar told reporters in New Delhi. 

ONGC will drill more than 350 wells in three CBM blocks in Jharia, Bokaro and North Karanpur in Jharkhand. 

A fourth block in Ranigajan North in West Bengal may be relinquished as it may fall in the way of a planned air-strip. 

"Production will start in three years and peak output of 3.2 mmscmd is likely in 2020-21," Mahawar said. 

Mahawar also said that CBM production is viable at USD 4.8 per million British thermal unit (mmBtu) gas price. In comparison, the current Government has mandated a rate of USD 4.24 per mmBtu.

ONGC sells CBM gas from wells at Parbatpur in the Jharia block at an approved price of USD 5.1 per mmBtu. 

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