The board of ONGC, on 10 May 2006, approved the award of a contract valued at Rs.932 crore for exploration of CBM in six blocks in Jharkhand and West Bengal to a consortium of Mineral Exploration Corporation Ltd, Shivani Oil & Gas Exploration Services Ltd, and US-based Express Drilling Systems LLC.

The contract involves exploration and development of six CBM blocks in Jharkhand and West Bengal with a targeted production level is 0.784 mmscmd. First CBM production is likely by June 2007. [The total value of the contract is $160.09 million (around Rs.735.29 crore @1$ = Rs.45.93) plus Rs.196.09 crore.]

Out of the total investment (contract value), Rs.557 crore have been earmarked for early CBM production from the Central Parbatpur area of the Jharia block. This represents Phase I of the project. In Phase II, another Rs.375 crore will be invested for drilling, completion and testing of 22 pilot wells in Jharia, Bokara and North Karanpura CBM blocks.

The entire project is scheduled for completion by December 2008.

(Note: This news item incorporates updates received on 19 May 2006 and 27 May 2006. The consortium conveyed its acceptance of the award to ONGC on 26 May 2006.)

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ONGC CBM block award might be delayed (26-Apr-06)