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Pratim Ranjan Bose

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Kolkata, June 28 ONGC seems to have finally stepped up gas on coal bed methane (CBM) development.

Having bagged a $-200 million project for turnkey CBM development (and exploration) in Jharkhand and Bengal in early 2006, the company is planning to start commercial production from Jharia-Parbatpur block by end 2008 or early 2009.

A firm agreement for selling up to 50,000 cubic metre CBM from Jharia is likely to be in place in the first week of July.

In addition, the company is planning a fresh development campaign – beyond the purview of ongoing contract for CBM development in Ranigunj block in Bengal.

Both the blocks – having reserves of most ancient coal available in the country – were acquired in pre-CBM Policy days and held jointly with Coal India Ltd.

ONGC’s Ranigunj block is located between the Ranigunj (east) of Essar -- which is being developed -- and producing field of Great Eastern Energy Corporation.

The energy major has already drilled one pilot production well in Ranigunj. While the well is currently put on test to ascertain the flow rate, plans are finalised to drill two more pilot wells.

Depending on the results, the company may go for a 100-150 well commercial development programme in the block in 2009-10.

According to sources, ONGC is currently producing approximately 20,000 cubic metres a day of CBM at Jharia from four wells.

The production is expected to reach up to 70,000 cubic metres in another couple of months following stabilisation of a new multilateral well drilled recently.

While the campaign to step up production from the block is on, the energy major plans to enter into a gas sales agreement with Calcutta Compressor and Liquifaction Ltd in July.

The latter is reportedly considering setting up a mini-liquifaction facility and arrange sale of CBM to industries or as auto-fuel in Jharkhand and Bengal.

Meanwhile, to pursue an intensive drilling campaign in the coming months, ONGC is mobilising more rigs for CBM exploration and development in Bengal and Jharkhand.

From only two rigs currently (one each mobilised by the company and its turnkey contractor), the number is expected to move up to seven (including three by ONGC and four by contractor) in the next two-three months.

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