IOC promises Rs10.8cr ($2.3m) for CBM exploration

Vol 5, PW 17 (10 Oct 01) News in Brief

Indian Oil's board of directors has approved a plan to spend Rs10.8cr ($2.3m) for the phase 1 work programme in three CBM blocks it has jointly bid with ONGC.

The three blocks are part of seven on offer in India's first CBM bidding round which closed on 31st August: RG (East)-CBM-2000/1, BK-CBM-2000/1 and NK-CBM-2000/1. No award has yet been formally announced.

But if successful IOC will have 20% interest in the first two blocks and 30% in the third. ONGC has told Indian Oil that the IRR (Internal Rate of Return)could be between 16% and 21% in dollar terms.