ONGC Likely to Relin­quish CBM Block in Rani­ganj

Resource Digest - - CONTENT -

Oil and Nat­u­ral Gas Corp plans to relin­quish its coal bed meth­ane (CBM) block in Rani­ganj, West Ben­gal, but is on course to pro­duce gas from an­other CBM block in Bokaro in Fe­bru­ary, a se­nior ex­ec­u­tive said.

It would be dif­fi­cult to de­velop the Rani­ganj North block since an air strip is com­ing up on the same land, Ved Prakash Ma­hawar, Di­rec­tor (On­shore) of ONGC, said. The com­pany eval­u­ated the fea­si­bil­ity of lat­eral drilling to tap gas un­der­neath the air strip, but it was found that this was not pos­si­ble, Ma­hawar said.

ONGC has stakes in three other CBM blocks in Bokaro, Jharia and North Karan­pura.of the to­tal nine CBM blocks al­lo­cated to ONGC, five have al­ready been re­lin­quished due to poor out­put po­ten­tial.

It plans to pro­duce first gas from its Bokaro block in Fe­bru­ary. “Nine sites are ready for drilling at Bokaro. Rigs will be de­ployed in Oc­to­ber,“said Ma­hawar. Land ac­qui­si­tion for the project is in progress with ONGC pur­chas­ing or tak­ing land from own­ers on long lease.a key con­tract to build gas gath­er­ing sta­tion has been awarded and is ex­pected to be ready by mid-2019. A peak pro­duc­tion of 7 lakh cu­bic me­ters a day is ex­pected from the field.

Re­cently, the gov­ern­ment freed up pric­ing for CBM.ONGC is fi­nal­is­ing a mar­ket­ing plan for its out­put from Bokaro, he said.

The de­vel­op­ment of Jharia block has been de­layed due to con­fu­sion over de­vel­op­ment rights: Steel­maker SAIL has the right to mine coal in the area while ONGC has the li­cense to pro­duce CBM from the same block. The two com­pa­nies have now sorted this out and a for­mal agree­ment will be signed soon, Ma­hawar said.ongc would first draw CBM from the block af­ter which SAIL will mine coal, ac­cord­ing to the un­der­stand­ing reached be­tween the two firms.

The Jharia block al­ready has some in­ci­den­tal pro­duc­tion of 5,000 cu­bic me­ters a day, which is bot­tled and sold to cus­tomers. But for the com­mer­cial de­vel­op­ment of the block, the com­pany is pre­par­ing a fea­si­bil­ity re­port.


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