India to Auction Six CBM Blocks in Fifth Round

Indian government is likely to auction six coal bed methane (CBM) blocks in the fifth round to be conducted this fiscal, according to Press Trust of India.

The blocks are GJ(1)-CBM-2013/V, GJ(2)-CBM-2013/V, GJ(3)-CBM-2013/V, GJ(4)-CBM-2013/V, GJ(5)-CBM-2013/V and GJ(6)-CBM-2013/V - all in the western Indian state of Gujarat.

A total of 33 CBM blocks have been awarded in the previous rounds. The blocks awarded hold 62.4 trillion cubic feet (Tcf) of in place reserves, out of which 9.9 Tcf has been established so far, Press Trust said.

"So far only 8 blocks have reached development stage and only one block has reached commercial production stage and four others are producing incidental CBM," an official told Press Trust.

The government, he said, is keen to push for CBM extraction in a big way and will soon announce the 5th round of bidding. Roadshows will be held in India and abroad to attract global majors to invest.

Last month, Essar Oil said it has achieved production of 0.65 million scm/d from its flagship Raniganj CBM asset in the eastern Indian state of West Bengal, becoming India’s biggest CBM producer.