The Hindu Business Line : ONGC may give up 2 CBM blocks in western region

Kolkata, Jan 31 ONGC may relinquish two coal bed methane blocks at Wardha (WD-CBM-2003/II) and Satpura (ST-CBM-2003/II) in Maharashtra and Madhya Pradesh respectively, according to sources.

Both were awarded in CBM-II and are fully held by ONGC.

Though the company is yet to take a call on the Barmer block (BS (3)-CBM-2003/II) in Gujarat held jointly with GSPC, sources told Business Line that the results of the exploration activity conducted so far were not encouraging.

The company has so far drilled eight core holes and two test wells in the block awarded in CBM-II. Tests have proved existence of coal deeper under the earth, which is generally considered unviable for CBM development.

The emerging situation may therefore restrict ONGC’s CBM exploration and development activity in the six blocks in Jharkhand and West Bengal having ancient coal reserves.

ONGC has five blocks in Jharkhand and one in West Bengal, and of the total, two (Jharia and Ranigunj) were acquired on nomination basis.

The rest are acquired through CBM-I and CBM-II.

The company has struck CBM reserves in Jharia and Bokaro and has launched a $200 million CBM exploration and development project for all the six blocks.

Gas is expected to flow in 2009.ONGC’s technical collaborator Stochinsky Institute of Russia has found the lignite resources in western India as unsuitable for setting up an underground coal gasification pilot project.

While the fate of ONGC’s MoU with Neyveli Lignite Corporation for a similar project in Tamil Nadu is not known, sources told Business Line, that tests carried out by Stochinsky Institute have identified availability of suitable coal in the eastern region.

More Stories on : Outlook | Petroleum | Oil & Natural Gas Corporation Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
India Cements buys ship

Xenitis launches sub-Rs 20,000 bike

HUL closes buyback of shares

Aurobindo bags Rs 70 cr order from NACO

Tatas acquire General Chemical of US for $1 b

Tata Chemicals acquisition timed well

Deccan Aviation, Kingfisher Air merger ratio fixed at 3:7

Puravankara plans to invest Rs 1,000 cr

Manaksia to set up steel facility in Georgia

InterVein Labs, D2L Pharma sign MoU

MRPL scholarship for students

Williamson Magor to target Tier II, III cities for land buy

GMR to raise Rs 250 cr thru rights issue

ONGC may give up 2 CBM blocks in western region

Daimler targets to sell 3,000 Merc Benz this year

Mundra Port handles 20.3 mt cargo in 9 mths; net at Rs 122 cr