The Hindu Business Line : ONGC's coal bed methane contracts get delayed

The awarding of integrated contracts by ONGC for exploration and development of coal bed methane (CBM) in six blocks in Jharkhand and West Bengal is delayed at least by a month.

The contracts were expected to be awarded in April. Hectic negotiation with the sole bidder, however, resulted in a marginal reduction in contract value from roughly Rs 1,000 crore to close to Rs 900 crore. "The contract value is now finalised. We are waiting for the sanction of the board to award the contracts. We expected the sanction to come in the last board meet. However, the proposal was postponed for discussion in the next board meet," a senior company official told Business Line.

Consortium

The consortium of Mineral Exploration Corporation Ltd, Shiv Vani Oil and Gas Exploration Services Ltd and Express Drilling Services had previously emerged as the sole bidder for the project. The other bidder for the project was rejected on technical grounds.

ONGC had floated the tender for the project in June 2005. However, the company was already running behind the schedule in awarding the same. The delay may impact the targeted production schedule of CBM. Spread over a period of four and half years, the project targets first CBM flow from Jharia block in Jharkhand in March 2007.

The other blocks lined up for exploration and development are nomination block Raniganj in West Bengal; CBM Policy-I blocks Bokaro and North Karanpura and CBM Policy-II blocks South Karanpura and North Karanpura (West) in Jharkhand.

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