ONGC approves CBM deal with Shiv Vani

Vol 10, PW 2 (18 May 06) News in Brief

ONGC is set to sign a $200m contract with the Shiv Vani led consortium to develop CBM blocks in northern India.

On 8th May, ONGCs board approved a proposal to award the contract to the Shiv Vani consortium. A Letter of Intent will soon follow and the contract must be signed within 30 days.

Mobilisation will be within six months. Shiv Vani, Houston-based Express Drilling and state-owned Mineral Exploration Corporation will provide integrated services for the development of the Central Parbatpur block and drilling, completion and testing of pilot wells in Jharia, Bokaro and North Karanpura CBM blocks.

On 27th January, ONGC opened the price bid of only the Shiv Vani led consortium. Another consortium of Essar Oil, Essar Projects and Gardes Energy Services was disqualified on technical grounds.

Essar went to court against ONGC but later withdrew the case.