The Hindu Business Line : BP scouting for partner to buy stake in Bengal CBM block

“We will continue to be the operator. We are focused on successfully completing our phase-I exploration and testing programmes,” said a company official.

Pratim Ranjan Bose

Kolkata, July 1

British Petroleum is planning to divest up to 50 per cent stake to a strategic partner in Birbhum CBM (coal bed methane) block in West Bengal, according to sources.

BP Exploration (Alpha) Ltd – a group outfit – acquired 100 per cent interest in the block BB-CBM-2005/III during the third bidding round for CBM blocks.

When contacted a company spokesperson confirmed the move to rope in a non-operating partner. “We are examining if we can divest a minority stake in the block BB-CBM-2005/III in Birbhum in West Bengal, a practice we routinely follow with most of our projects to optimise our exploration spend globally and portfolio and we try to maintain a strict discipline on exploration globally,” the official told Business Line.

“We will continue to be the operator. We are focused on successfully completing our phase-I exploration and testing programmes,” he added.

Industry sources, however, claimed that BP was scouting for a partner to divest 50 per cent of its non-operating interest in the block to recover, partly or fully, its expenses towards the CBM project.

While BP officials declined to comment on project details and the prospective partner, sources in some of the existing CBM players in the country who had visited the BP data room said that the international oil and gas major launched a $60-million (approximately Rs 300 crore) programme to drill 12 core holes and five production wells in the block.

According to sources, nearly 30 per cent of the project cost is earmarked for overhead spends and most of the contracts for the project have been awarded.