Assam Company, Gammon to bid for oil blocks

Assam Company has formed a consortium with Gammon India to bid for oil exploration in two oil blocks in Gujarat and Rajasthan.

Rajasthan basin has an area of 13,915 square km and Cambay has an area of 448 square km. Rajasthan basin is one of the largest oil blocks. The petroleum ministry would decide on the new exploration licensing policy (NELP) blocks on July 31.

The company is having a board meeting on Friday to consider the demerger proposal of both the tea and oil & natural gas business divisions to have better administrative and financial control.

The Centre had earlier been awarded two blocks in Assam to the consortium of the company and Canaro Resources, a Canadian company with expertise in oil and gas business worldwide.

Assam Company's oil and natural gas division has commenced work on the extraction of oil and natural gas in Amguri Block in Assam.

The exploration activities have been successful and commercially proven reserves have been found in the Amguri block in Assam. The estimated in place oil reserves are 58 million barrel and associated free gas reserves are in the region of 95 billion cubic feet.