ONGC's awarding of contracts for exploration of coal bed methane in six blocks in Jharkhand and West Bengal might be delayed by a month, according to reports. The contracts were expected to be awarded in April 2006.

It is learnt that negotiations with the sole bidder -- a consortium of Mineral Exploration Corporation, Shiv Vani Oil Drilling and Gas Exploration Services -- has caused the delay. The final value of the contract is likely to be Rs.900 crore, as against Rs.1,000 crore earlier. The revised contract value now awaits ONGC board approval. ONGC had floated the tender for the project in June 2005.

Spread over a period of four and half years, the project targets first CBM flow from Jharia block in Jharkhand in March 2007. The other blocks lined up for exploration and development are Raniganj in West Bengal (nomination block), Bokaro and North Karanpura (CBM-I), and South Karanpura and North Karanpura-West in Jharkhand (CBM II).

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ONGC to award contracts for CBM blocks in April 2006 (05-Apr-06)