Essar Oil sets 2008 for CBM from Raniganj

Vol 11, PW 4 (28 Jun 07) News in Brief

Essar Oil plans to begin commercial production of Coal Bed Methane from its Raniganj block in eastern India by mid-2008.

An Essar source tells this report that Raniganj, with 1-tcf recoverable CBM, could produce 2.5m cm/d gas for about 20 years. Of the 12 core-holes committed, Essar has drilled 10 and is now drilling the rest.

“Cross bore seismology has been done to analyse the coal seams,â€‌ we hear. After this year’s monsoon, Essar plans to drill the first multi-lateral well at Raniganj.

“If this is successful we will drill about 24 more such wells.â€‌ These wells will substitute the originally planned 200 vertical wells.

The advantage of multilateral wells is, says Essar “that there is no need to hydro-fracture the coal seams to produce CBM, unlike in conventional vertical wells.â€‌ Essar has no concerns about finding buyers for its CBM as Raniganj is very close to state-owned Durgapur Steel Plant and the West Bengal state capital.

“Kolkata is just 200-km away,â€‌ we hear.

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