Reliance plans CBM production if stars align
Now the government has granted marketing freedom to CBM producers, Reliance only needs approval from its astrologers before beginning commercial production from its Madhya Pradesh blocks.
After months of suspense, the Narendra Modi-led Cabinet Committee on Economic Affairs approved its long-awaited policy on March 15 allowing CBM producers to sell CBM at market driven prices. Reliance sources tell this report the very next day (March 16) senior managers at its Mumbai-based E&P division met to discuss when to begin CBM production from the company's Sohagpur East and West blocks.
"Our management will set a date on which to begin gas production in a day or two," we hear. "But the Ambani family will 'open the tap' only after consulting their astrologers!" Reliance has completed 350 wells across both blocks.
Of these, 200 were readied for production by December 2016 in anticipation of cabinet approval. Initial gas production from these wells is expected to be more than 100,000 cm/d.
"All depends on management," adds a source. "They will tell us how much production should be extracted.
All 200 wells won't begin producing from day one." He explains the wells will need to be de-watered again and serviced before production begins because water will have accumulated since December. Reliance shareholders will be happy.
Last year on September 1 Reliance supremo Mukesh Ambani promised the start of CBM production by March 31 this year (2017).
