CBM 'farm-in' stakes

Vol 15, PW 10 (17 Nov 11) News in Brief
     

Brisbane-based Dart Energy, UK-listed Great Eastern Energy and Mumbai-based Essar Oil submitted formal ‘farm-in’ proposals last month in the race to win up to 40% stakes in four of five ONGC-operated CBM blocks.

On offer is the role of operator and stakes at ONGC’s Jharia, Bokaro and North Karanpura CBM blocks in Jharkhand; and its Raniganj North CBM block in West Bengal. On October 3, ONGC Exploration Contract Monitoring Group (EXCOM) executive director MK Sinha asked the three companies to submit their final offers within 21 days.

All have done so and ONGC is evaluating offers. ONGC has not clarified in its ‘request for proposal’ the sizes of stakes it might farm-out.

But we do know it will award 50 points under its scoring system for ‘technical’ criteria like a company’s domestic and overseas CBM acreage; production from these areas; and their proximity to ONGC’s CBM blocks. ONGC will also award 50 points for ‘financial’ criteria like ‘past costs’ and ‘production bonus.