Essar Oil is likely to infuse $439 million (approx Rs 1,954.4 crore) to drill
500 wells in its coal-bed methane (CBM) block located in Raniganj, West Bengal.
The company is likely to commence commercial production of gas from the block
by end-2010. The company has already invested equity of $35 million (approx Rs
154 crore) into the project. The remaining capital expenditure will be a mix of
both debt and equity.
The initial production will be close to 1,00,000 standard cubic metres per
day and will go up to 3.5 mmscmd during peak production. Essar has inked a
10-year gas supply contract with Philips Carbon Black and 20-year pact with an
upcoming fertiliser company in West Bengal.
Also See:
Essar
Oil mulls pipeline from Durgapur to Kolkata (07-Apr-10)