The Hindu Business Line : Coal bed methane output at ONGC's Bokaro block to begin in 2008

The two major beneficiaries of the find are expected to be SAIL's Bokaro Steel Plant and the Damodar Valley Corporation. Several private players are also interested in the linkage.

Although 45.03 billion cubic metre reserve potential has been ascertained, spread over 95 sq km, the recoverable reserve and production capacities would be confirmed over time.

According to sources, the company has drilled two exploratory wells, BK1 and BK2, in Bokaro using its own rig. Coal seams have been identified in BK1. In BK2, seven gas-bearing coal seams were found at a depth of 1,067 metres. The wells are currently being tested, following which the company will drill pilot production wells to ascertain the capacity.

Meanwhile, ONGC is awarding contracts for exploratory and development drilling in four blocks in Jharkhand. Under the new production plan, ONGC will produce a minimum of three lakh cubic metre CBM a day for three years. The first CBM-flow is expected at the Parbatpur block in 2006-07.

The director general of hydrocarbons (DGH) has estimated a production of 25 million standard cubic metre of CBM in the next five years.

Bullish on K-G find: ONGC has smelled further success in the Krishna-Godavari basin.

According to sources, the discovery is in the final stages and may well prove to be the "biggest" this year, comparable to the claims of Reliance and Gujarat State Petroleum Corporation Ltd (GSPCL).

Reliance and GSPCL declared 14 and 20 trillion cubic ft gas reserves respectively in the KG basin. ONGC has already struck small and medium gas reserves at a number of blocks in the same basin.

According to sources, the company has added 400 million tonnes of oil and oil equivalent gas reserve during the year. This is against a targeted increase of 400 million tonnes.

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