Essar Plans to Explore CBM Gas Overseas

Essar Group is keen to use its expertise to prospect for CBM overseas after producing in India and is looking to enter into strategic partnerships with other oil and gas companies to do this, a person with direct knowledge of the development said.

The diversified conglomerate, which holds its oil and gas assets through the London-listed Essar Energy Plc, is in talks with four of China’s largest oil and gas producing companies—PetroChina Co. Ltd, Sinopec Group, CNOOC Ltd, and China National Petroleum Corp.—to partner their CBM pursuits in China.

“The company has made presentations to them (the Chinese companies) and discussions are on,” the person, who did not want to be identified, added.

Essar has also mandated a local consultant and a university in Indonesia to conduct a joint study on the feasibility of producing CBM in Indonesia (read about Essar’s Indonesian interests here).

Based on the feasibility report, in the next two-three months, Essar will approach BP Migas, Indonesia’s upstream oil and gas activities regulator.

Source: Live Mint