Energy major Essar Oil is expecting some incentives for exploration of gas keeping in view challenges and difficulties like deep and ultra deepwater gas production.
"We are expecting some kind of incentives just like deep and ultra deepwater gas production. Even in CBM, there are challenges and difficulties," Essar Exploration and Production CEO Manish Maheswari said.
He was speaking on pricing of CBM and viability. For deep and ultra deepwater conventional gas, the pricing is around USD 6 per mmbtu.
"Currently, as per government notification of 2014, the well head price is around USD 3.4 mmbtu and as a company we will always seek better prices," Maheswari said.
However, the company is already EBITA positive with one mmscd production.
Beside Ranigunj block, Rajmahal block is also being developed. Approvals are already in place and land acquisition is under progress. The total investment in it is expected to be Rs 4,000 crore spread over the next 3-5 years.
Speaking about discovered small fields, Maheswari said Essar is keen on bidding for them, the deadline for which ends on October 16.
(Reopen CCM7)
In October 2014, gas price notification provided for certain incentives for deep, ultra deep water and difficult reservoirs.
While the government has already announced incentives for deep, ultra deep, high temperature and pressure, the same for difficult reservoirs are awaited and "we fall in this category", Maheswari said.
