State-owned Oil and Natural Gas Corporation (ONGC) today said it has signed a memorandum of understanding with Australia's Arrow Energy for cooperation in exploiting gas lying below the coal seams, called coal bed methane (CBM).
The MoU has been signed by ONGC Director (Exploration) D K Pande and Arrow Energy CEO and Managing Director Nicholas Davies, a company press statement said here.
The main areas of cooperation identified under the MoU are joint participation in blocks in India and abroad for exploration, field development and production of CBM; and sharing of knowledge, experience and transfer of technology in CBM sector, it said.
CBM found in coal seams is fast emerging as an important source of energy world over. In India, CBM resources are estimated at about 2,600-3,300 billion cubic meters.
ONGC has been carrying out CBM activities in Jharkhand, West Bengal, Madhya Pradesh and Gujarat.
Arrow is a leading Australian integrated energy company focused on the development of CBM. It has presence throughout Eastern Australia, China, India, Vietnam and Indonesia.
Speaking on the occasion, ONGC Chairman and Managing Director R S Sharma said that there is tremendous potential in CBM business which can be harnessed jointly.