BP expects PEL for CBM end-October

Vol 11, PW 11 (04 Oct 07) News in Brief

After several months of delay, BP is confident it can secure the Petroleum Exploration Licence for its Coal Bed Methane exploration block BB-CBM-2005/III in the Birbhum district of West Bengal by the end of this month.

Originally expected on March 1, delay has held up BP’s plan to begin work at the block. Once it has the PEL, BP will meet upstream regulator DGH for formal approval of the work programme and the material and equipment procurement strategy for the block.

“After that we will go out to tender for a rig.â€‌ BP plans to drill eight core holes on this block around March-April 2008.

“This will be the first activity on the block.â€‌ These core holes will yield data about the thickness of the coal seams, quality of the coal and its distribution around the block.

Only after this information is in hand will BP shoot seismic over this 248-sq km block for which it signed a PSC on November 16, 2006, becoming the first multinational with CBM acreage in India.