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The company is farming out 35 per cent stake in the four blocks to expedite gas production with the help of private sector firms. It faced land acquisition problems and rig availability issues that has delayed production.
The official said Dart will get 25 per cent in the Jharia, North Karanpur and Bokaro block while in Raniganj, it will get 10 per cent. In Raniganj, London-listed Great Eastern Energy Corp Ltd will be the lead partner with 25 per cent interest. CCLE, Prabha Energy and MMS would take 10 per cent in Jharia, North Karanpur and Bokaro blocks, where Dart would be the lead partner, he said.
CBM is natural gas trapped within coal formations, which is extracted by drilling holes into the seams. ONGC, which has so far spent about Rs 510 crore on the four blocks, had offered to give out up to 35 per cent stake through a tender last year.
However, the oil ministry asked the company to cancel the tender as only three players bid. The company invited fresh international bids in November and has now finalised the farm-out arrangement, he said. ONGC is the operator in the Raniganj north block with a 74 per cent stake, while state-run Coal India Ltd (CIL) holds the remaining stake.
At Jharia, it holds a 90 per cent stake, while CIL has 10 per cent. At Bokaro and north Karanpura, it is the operator with 80 per cent each.
The remaining stake in the two blocks are held by state-owned Indian Oil Corp.
According to ONGC estimates, the Jharia block holds 85 billion cubic meters (bcm) of in place gas reserves. North Karanpura holds 62 bcm, Bokaro holds 45 bcm and Raniganj North holds 43 bcm. Of these, the company has established 76 bcm of in place reserves and it is now awaiting regulatory approval for field development plan it had submitted recently.
ONGC TO EXPEDITE PRODUCTION
- To give 10 to 25 per cent stake in its 4 CBM blocks to Dart Energy Ltd
- To farm out 35 per cent in stake 4 blocks
- Has spent about Rs 510 crore on the four blocks
- Offered 35 per cent stake through a tender last year
- Holds 90 per cent stake in Jharia, 80 per cent in at Bokaro and north Karanpura each
