ONGC to Make Significant Investment in its Four CBM Blocks in India

India’s biggest state owned energy company Oil and Natural Gas Corp. Ltd (ONGC) has decided to make substantial investments to develop its four coal bed methane (CBM) blocks, Mint, a newspaper, reported.

Two blocks, North Karanpura and Bokaro, in the eastern Indian state of Jharkhand are expected to begin producing gas by second half of 2017-18 (Apr-Mar). ONGC has sold 25 percent stake in its North Karanpura block to Prabha Energy Pvt. Ltd (PEPL). PEPL and ONGC are joint operators of this block. The block in Bokaro would be developed by ONGC alone, the newspaper reported on Friday.

ONGC originally held interest in nine CBM blocks. It later relinquished stake in other five blocks because of poor commercial potential. Apart from North Karanpura and Bokaro, the company currently has stake in Jharia and Raniganj blocks in the state of West Bengal.

Currently, only two companies in India are producing CBM, GEECL from its Raniganj (South) block and Essar Oil’s from its Raniganj (East) block. Reliance Industries is expected to commence production later this fiscal.