ONGC, Oil India to Invest $123 mn in Bokaro CBM Block
Indian state owned firms ONGC and Oil India will invest Rs 823 crore ($123 mn) in the Bokaro coal bed methane (CBM) block in the state of Jharkhand, ONGC’s Chairman Dinesh K. Sarraf said.
“Investment decisions have been taken by ONGC Board for development of Bokaro CBM Block (BK-CBM-2001/1) at a total project cost of Rs 823 crore,” Sarraf said in the company’s annual report for 2015-16 released on Friday.
ONGC which has 80% interest in the block will invest Rs 658 crore while the rest would come from Oil India. The project envisages CBM gas production of 4.068 billion cubic metres in 20 years with a peak of 0.9 million metric standard cubic metres per day (mmscmd). A total of of 141 wells are expected to be drilled.
Indian coal bed methane sector has been struggling due to lack of clear policy framework. Current domestic production of CBM is miniscule 1.07 mmscmd in 2015-16.
Earlier this week, a parliamentary panel has said that India needs a new current coal bed methane (CBM) exploration policy as the current one has not been able to achieve its objective of production to the promised potential. Parliamentary Standing Committee on Petroleum and Natural Gas tabled a report in India’s lower house of the parliament on Thursday.
“In view of the newer techniques of assessment and exploration and drilling of CBM have significantly improved, the committee, therefore, feel that there is need to formulate a new comprehensive CBM policy consistent with developments in regulatory regimes and also taking into account the performance of the existing policy,” the report stated.