Coal-bed methane output by 2006-07

ONGC is going to issue service contracts to international agencies with a target to begin commercial production of coal bed methane (CBM) by 2006-7.

The company which has nine CBM blocks in five states across the country will float tender in January to drill at least 30 wells using a new technology, a ONGC official said today.

The new method uses multilateral multi-branch drilling technology and improves production rates manifold leading to overall high recovery.

"ONGC will offer service contracts which means only the service would be outsourced without the exploratory risk associated with such work. Companies will be employed on a fee basis," A K Biswas, general manager - basin manager (CBM-BPM), ONGC, said.

The company is hopeful of commercial production at the Parbatpur area of the Jharia block in Jharkhand by 2006-7.

It has Jharia, Bokaro, North Karanpura. South Karanpura and South Karanpura West blocks in Jharkhand, Raniganj in West Bengal and one block each in Gujarat, Maharastra and Madhya Pradesh. Biswas said ONGC would start exploratory drilling in next 10 days with its own rigs at Bokaro.

Indian Oil Corporation (IOC) has 20 per cent stake in Bokaro and North Karanpura blocks and Coal India Ltd (CIL) has 26 cent and 10 per cent interest in Jharia and and Raniganj blocks.

In the new technology, the initial investment was high but it could reduce the number of wells needed.The technology was likely to be suitable for India as Indian coal deposits were very old with low permeability, leading to poor flow of gas.

The new method did fracturing at the time of drilling and in both horizontal and vertical lines. CBM is used as fuel in countries like US, Australia, China and Canada as all had large coal reserves like India though CBM had low calorific value.

Biswas said electric power company Damodar Valley Corporation and West Bengal Infrastructure Development Corporation were keen on CBM gas supply in the eastern zone.