Industry & Economy
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Petroleum
ONGC may award coal bed methane drilling contracts in May
Our Bureau
Kolkata. April 21
,
ONGC is expected to award the exploratory and development drilling contracts for coal bed methane (CBM) in May this year.
The company was scheduled to start the drilling in November last. The contracts are now finalised, and awaiting approval of the board, informed sources told Business Line.
On whether the delay in awarding contracts would lead to revised commercial production schedules, the sources said that unless some more problems crop up, the delay could be made up.
It may be mentioned that ONGC's initial effort to award turnkey contracts for exploration, development and production of CBM had failed to win the confidence of the technology companies even after prolonged negotiations and pre-bid exercises.
While the entire gamut of the current exploration and production scheme is not known, the sources said that development drilling would begin with the Jharia block, where ONGC has identified sufficient reserves during its decades long exploratory drilling.
The block was held through a 90:10 joint venture with Coal India Ltd.
Meanwhile, the company has commenced exploratory drilling at CBM Policy-I block at Bokaro, using its own rig. The block is held through an 80:20 joint venture with Indian Oil.
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