GEECL to Invest $1bn in Indian CBM Sector

India’s oldest coalbed methane producer Great Eastern Energy Corporation (GEECL) plans to invest $1bn in the next five years to further tap into the unconventional energy resources of India, the UK-listed company’s CEO Prashant Modi said in a statement July 5.

This came after the recently held 9th UK-India Economic and Financial Dialogue where both the governments decided on a £240mn ($310mn) joint investment to boost India's fast growing energy market as well as strengthen the trading relationship between both nations.

"At present the top priority of GEECL is to continue its drilling activities in the Raniganj (South) block located in the state of West Bengal, India, where further 144 wells are to be dug. In the next 5 years, we will invest £768mn across the unconventional energy space in India focusing on CBM and shale gas as well," Modi said. As of now, the company has no plans of entering the conventional energy sector of India, it said.

The Indian government has in recent years embarked on numerous reforms in the energy space. In March 2016 last year, the government adopted a new policy, HELP (Hydrocarbon Exploration Licensing Policy) based on a revenue sharing model which focuses on four main aspects - uniform licensing, marketing and pricing freedom and open acreages. Speaking on these developments, Modi stated that he is confident that it will encourage investment from foreign as well as domestic players into the fast growing energy market of India.

Meanwhile, GEECL July 5 reported that it has narrowed its full-year loss to $1.9mn for its financial year ended March 31, from a $4.1mn loss the prior year.

Shardul Sharma