The Hindu Business Line : Anil Ambani group to invest Rs 100 cr in Phase I

CBM blocks
The Government had put on offer 10 blocks, which saw 26 companies, including eight foreign companies and 18 Indian companies bidding either on their own or as consortia.

GLAD WE'RE HERE: (From left) The Director-General of Hydrocarbons, Mr M.V.K. Sibal; the Minister for Petroleum and Natural Gas, Mr Murli Deora; the Arrow CEO, Mr Nick Davies, and the GAIL Chairman and MD, Mr Mohan R. Hingnikar, at the signing ceremony of blocks awarded to companies/consortiums under the third round of coal-bed methane in the Capital on Tuesday. — Kamal Narang

New Delhi , Nov. 7

With the Government on Tuesday signing nine contracts under the third round of coal bed methane (CBM-III) for exploration and production of gas trapped below coal seams, the Anil Ambani group, whose consortium has bagged four blocks, is looking at an investment of close to Rs 100 crore in the first phase of exploration.

Australia's Arrow Energy-GAIL (India) consortia, which has bagged three of the blocks, is planning an investment of about Rs 2,250-Rs 2,700 crore over a period of 20 years in the project.

The Government, on its part, is expecting about $1 billion investment in the exploration of CBM blocks. The Government had put on offer 10 blocks, which saw 26 companies, including eight foreign companies and 18 Indian companies bidding either on their own or as consortia. Reliance Energy Ltd (REL)-Reliance Natural Resources Ltd (RNRL)-GeoPetrol International Inc signed the production sharing contracts (PSC) for four blocks, while Arrow Energy (India) Pty Ltd-GAIL (India) Ltd-EIG Energy Infrastructure Group A.B. (EIG)-TATA Power Company Ltd signed for two blocks. Arrow Energy-GAIL-EIG inked the production sharing contract for one block. Coalgas Mart Llc-Deep Industries Ltd-Adinath Exim Resources Ltd and Coalgas-Deep Industries signed the production sharing contracts for one block each.

`Pact likely to penned next week'

As regards awarding of a block to BP Exploration (Alpha) Ltd, a Petroleum Ministry official said that negotiations are still underway with the awardee company for block BB-CBM/2005/III in West Bengal. Sources told Business Line, that the contract is likely to be signed next week.

An REL official said, "We will be investing close to Rs 100 crore in the initial phase of exploration in the four CBM blocks." The committed minimum work programme consisted drilling of coreholes (depth of each well in meters), number of wells to be drilled and sampling and analysis of coal coreholes.

The estimated amount to complete the committed activities in Phase I for each block is Rs 25-27 crore, he said. The consortium led by RNRL has been awarded two blocks in Rajasthan and one each in Andhra Pradesh and Madhya Pradesh.

According to a GAIL official, an estimated expenditure in the first phase of exploration of the three blocks awarded is to the tune of Rs 72 crore out of which GAIL's share would be in the tune of Rs 27 crore. The consortia of Arrow-GAIL-EIG have been awarded a block in Chhattisgarh, and GAIL-Arrow-EIG-TATA consortia have been awarded a block each in Jharkhand and Chhattisgarh.

Coalgas-Deep Industries consortia has been awarded a block each in Madhya Pradesh and Andhra Pradesh. Speaking on the occasion, Petroleum Minister, Mr Murli Deora, said: "Results in some of the blocks offered under the previous rounds have exceeded our expectations and three operators have established in-place gas reserves of over six trillion cubic feet. The first commercial production of CBM in the country is expected to commence in 2007."

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