Business Daily from THE HINDU group of publications
Thursday, Jul 17, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, Jul 17, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Outlook Industry & Economy - Petroleum
‘Higher content of impurities in gas, depth of the reservoir make project unviable’ Pratim Ranjan Bose Kolkata, July 16 ONGC is planning to relinquish the Barmer-Sanchor CBM (coal bed methane) block it now jointly holds with Gujarat State Petroleum Corporation (GSPC). ONGC has operating interest in the block (BS (3)-CBM-2003/II). With this, ONGC’s CBM exploration asset portfolio will drop to six blocks, comprising five in Jharkhand and one in West Bengal, all in the country’s most ancient coal bearing regions. It recently relinquished two CBM blocks at Wardha in Maharashtra and Satpura in Madhya Pradesh. According to sources, ONGC-GSPC consortium has so far drilled eight core holes and two test wells in Barmer-Sanchor awarded in CBM-II. Tests have proved existence of coal seams deeper under the earth. This, and a relatively lower 60-65 per cent methane content in the gas recovered from coal seams, reportedly makes the CBM development commercially unviable. “The methane content in Barmer is much lower compared to approximately 95 per cent in the blocks located in the eastern region of the country,” a source told Business Line. “The higher content of impurities in gas together with the depth of the reservoir make the project unviable,” the source added. Focus on explorationMeanwhile, the Indian E&P major is focusing on fast-track exploration and development of CBM in Jharkhand and Bengal. The company has already entered into first agreement to sell CBM on commercial terms from its pre-CBM Policy block in Jharia by end 2008. Pilot production wells are also drilled in Ranigunj block in West Bengal. Depending upon the result of the pilot drilling campaign, to be concluded in the next few months, ONGC may launch a commercial scale development programme in the block next year. More Stories on : Outlook | Petroleum | Oil & Natural Gas Corporation Ltd
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