ONGC may start CBM prodn by 2007

ONGC plans to start commercial production of coal-bed methane (CBM) by March 2007, and is planning to outsource services from overseas firms for CBM production in six blocks located in the Bengal basin.

"The company has targeted to start commercial production of CBM in the Jharia block by March 2007," A K Biswas, general manager (basin manager, CMB-BPM), said today.

The company, which has six CBM blocks in the Bengal basin, has also planned to give service contracts to overseas firms for production of CBM, he added.

"We are planning to give service contracts for all the 30 wells in six blocks. The tendering process will start in January," Biswas said.

Stating that the rate of flow of CBM was very low, he said ONGC wanted to avail of the `multi-lateral, multi-branch drilling technology' through the service contractor "as this technology increases both the production rate and overall recovery."

The 30 wells were situated in six blocks - Raniganj (West Bengal), Bokaro, Jharia, North Karanpura, North Karanpura (West) and South Karanpura (all located in Jharkhand).

The company also has three CBM blocks in Satpura (Madhya Pradesh), Barmer (Gujarat) and Vidarbha (Maharashtra).

"One of these three blocks may also be given under the service contract to start commercial production, which will start with Jharia and be taken up in others gradually," Biswas said.

ONGC is also planning to start exploratory drilling at the off-shore block in the Sunderbans area in South 24 Paraganas district of West
Bengal by March 2005 at a total cost of about Rs 500 crore, he added.

Biswas said the 3D seismic data for selected areas have already been acquired and interpreted for the shallow water NELP block (WB-OSN-2000/1), located 80 kms south of Sunderbans.

"It will take us about four months after the drilling is started to confirm if there can be sustained supply from the oil reserve there," he said.