Delay in CBM contracts blamed on NELP-III

Vol 6, PW 8 (19 Jun 02) News in Brief

Essar Oil has complained to the oil ministry about delays in signing PSCs with winners of the first coal bed methane licensing round, which closed on 31st August last year.

In its 14th May letter to oil minister Ram Naik, Essar said two months have passed since it initialled its contract and that a quick signing would "send the right signal to theinternational exploration and production community" in the context of NELP-III. A source tells PETROWATCH the PSCs for CBM will be signed when Naik returns from the NELP roadshows.

Contracts were 'initialled' on 13th March. They are now circulating in other ministries for "comments." Seven CBM blocks were offered and bids received for six.

Essar won one, Reliance three and ONGC in partnership with IOC won two.