INDIA
JOINS SELECT GROUP OF CBM COUNTRIES
Shri Ram Naik, Minister of Petroleum & Natural
Gas announced that Government of India has signed 5 contracts
for exploration and production of Coal Bed Methane (CBM) in the
country. The contracts were signed here today where among others,
Shri Ravi Shankar Prasad, Minister of State for Coal and Law and
Justice, Shri S.K. Gangwar, Minister of State for Petroleum &
Natural Gas and Parliamentary Affairs, Shri N.K. Sinha, Secretary
(Coal) and Shri B.K. Chaturvedi, Secretary (Petroleum & Natural
Gas) were also present. The 5 blocks are located as follows –
2 blocks in Jharkhand, 2 blocks in Madhya Pradesh and 1 block
in West Bengal.
Shri Naik mentioned that CBM is found in the
coal bearing areas and production of CBM would provide a new source
of natural gas to the country and it will also make coal mining
safer and reduce environmental hazards. The CBM resource base
in the 5 blocks for which contracts were being signed is about
235 Billion Cubic Metre (BCM). CBM being a low pressure gas could
be utilised locally for power generation, industry as well as
domestic use and would help to boost the local economy. The initial
investment in these blocks is estimated to be about Rs. 200 crores
and further investments would then depend upon the results of
assessment of commerciality of CBM available.
The signatories to the 5 contracts were – a consortium
of Oil & Natural Gas Corporation Limited and Indian Oil Corporation
Limited for the 2 blocks viz Bokaro and North Karanpura, both
in Jharkhand, Reliance Industries Limited for the 2 blocks viz
East and West Sohagpur, both in Madhya Pradesh and Essar Oil Limited
for the 1 block viz East Raniganj in West Bengal.
Shri Naik further mentioned that all issues pertaining
to jurisdiction as well as the legal position regarding CBM had
been resolved before the blocks were offered under CBM-I. CBM
being a natural gas is covered under Oilfields (Regulation and
Development) Act (ORDA), 1948 and Petroleum & Natural Gas
Rules (PNGR), 1959.
Shri Naik pointed out that by taking steps to
explore and produce CBM, India has joined a select group of nations
such as USA, South Africa, Poland, Australia, Russia and U.K.,
which are engaged in CBM operations.
Shri Naik announced that preparatory work for
finalisation of CBM blocks for the second round of CBM (CBM-II)
is in progress in consultation with Ministry of Coal and CBM-II
is expected to be announced in the first/second quarter of 2003.
Shri Naik informed that contracts for 2 blocks awarded to the
consortium of ONGC and CIL would be finalised and signed shortly.
