ONGC gears up for first CBM production

Vol 20, PW 24 (24 Aug 17) News in Brief

ONGC believes it can quadruple India's CBM production as it gears up to begin selling first gas from its North Karanpura, Bokaro and Jharia blocks.

"ONGC will drill more than 300 wells to raise production by 2022," we hear. From North Karanpura (NK-CBM-2001/1) ONGC is planning 68 wells with first gas expected end-2017; from Bokaro (BK-CBM-2001) it is planning 155 wells with first gas by March 2018; from Jharia it will drill 77 production wells under a Rs1136cr ($171m) campaign that includes five new gas collecting stations and an interconnected pipeline network to handle 250,000 cm/d.

ONGC is offering a minimum 10,000 cm/d from each block for five years on a 'fallback' basis in tenders floated on August 11. A pre-bid is planned at Bokaro on September 8 and October 11 is the bid deadline.

ONGC wants a reserve price of $5.46/mmbtu on a Gross Calorific Value (GCV) basis and $6.01/mmbtu on a Net Calorific Value (NCV) basis. Average CBM production in India increased from 1.07m cm/d in 2015-2016 to 1.55m cm/d in 2016-17 and from April to July 2017 averaged 1.708m cm/d, according to PPAC government data.

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