Dart Energy to Relinquish Stake in ONGC's CBM Blocks

In a move that could delay Indian state owned energy major Oil and Natural Gas Corporation's (ONGC's) foray into coal bed methane (CBM) exploration, Australia based Dart Energy has surrendered its stake in the former's CBM bocks.

According to Indian newspaper Business Standard, Dart has decide to exit India due to tough conditions of doing business in the country.

In June 2013, ONGC had offered a 10 to 25 per cent stake in four of its CBM blocks to Dart.

"In line with the group's re-focused strategy, it is seeking opportunities to farm-out and/or sell or exit all of its activities in India. In addition, the group had in the previous financial years submitted relinquishment requests in respect of three other licences which continued to be reviewed by the Indian government," Business Standard quoted from Dart’s annual report.

Dart was said to have got 25 per cent interest in the Jharia, North Karanpura and Bokaro blocks in Jharkhand. It also won a 10 per cent stake in the Raniganj block in West Bengal. In the latter, London-listed Great Eastern Energy Corp is Dart's partner, with 25 per cent interest.

ONGC had last year decided to farm out stakes in its four CBM blocks, as it wanted to expedite production, according to Business Standard.