ONGC Cancels Bengal CBM Block Sale to GEECL

Indian state owned energy major ONGC has cancelled its agreement with Great Eastern Energy Corp (GEECL) to divest 25% farm-in right to its Ranigunj CBM block in West Bengal, DNA, a local newspaper, reported Wednesday.

Another public sector unit, Coal India, which is also partner in the block is believed to have prevailed upon ONGC to cancel the stake sale, arguing that it is a competent authority to develop and operate the block, sources have told DNA.

"We have received a letter from ONGC deciding to call off the process of awarding 25% participating interest in Ranigunj North CBM block without assigning any reason," Y K Modi, chairman and managing director of Great Eastern Energy, told DNA, confirming the development.

ONGC has 74 percent stake while Coal India owns the rest.

Great Eastern and also other parties like Dart Energy and Deep Industries were selected in May 2013 as successful bidders for three CBM blocks of ONGC.

The public sector petroleum explorer then decided to sell 25% in Ranigunj and North Karanpura blocks each and another 35% in its Bokaro block.