Deep farms into ONGC Jharkhand CBM block
This month (October) the oil ministry is expected to clear a proposal by BSE-listed Deep Industries subsidiary Prabha Energy to 'farm-in' to ONGC’s North Karanpura CBM block NK-CBM-2001/1 in Jharkhand.
Last month (September) Prabha replied to DGH queries raised by a steering committee of ONGC (80%), IndianOil (20%) and the ministry. “The DGH queries were general,” says a source.
“Prabha answered all satisfactorily.” With ministry approval in hand Prabha secures 25% at the block from ONGC, leaving it with 55%.
Prabha also becomes operator. ONGC directors cleared the proposal in June and sent the file to the oil ministry for endorsement in July.
Prabha has begun preparing a list of services needed to develop the block where the Field Development Plan (FDP) approved by the steering committee in 2012 envisages more than 70 development wells. Once the stake transfer is approved, Prabha will invite EoIs for CBM rigs, logging, perforation, workover, cementation, hydrofac and production well dewatering services.
Prabha’s parent Deep, which owns two CBM drilling rigs, is eligible to bid in the rig tender “Whoever offers a competitive price can bid,” we hear. In July, 2015 Jharkhand state authorities approved a Mining Lease for North Karanpura which kicked off the five-year development phase.