ONGC Firms Up Plan to Sell Stake in CBM Blocks

ONGC has firmed up plans to rope in strategic private sector investors in three coal-bed-methane assets in West Bengal and Jharkhand.

According to sources, in April this year, the ONGC board decided to rope in two strategic partners, with 25 per cent and 10 per cent stake each, as joint operators in the North Karanpura (Jharkhand), Bokaro (Jharkhand) and Ranigunj (West Bengal) assets, Business Line reported.

According to ONGC, each block has one trillion cubic feet of methane reserves, the newspaper said.

The PSU major holds 90 per cent operating interest in Ranigunj and 80 per cent each in Bokaro and North Karanpura.

The farming-out of strategic interest in the most prolific Jharia block, where ONGC has a production well, has been put on hold.

The sources told Business Line that Dart Energy (formerly Arrow) was offered 25 per cent stake each in the Bokaro and North Karanpura blocks.

The company also offered it a 10 per cent stake in the Ranigunj block. Great Eastern Energy Corporation Ltd (GEECL) was offered a 25 per cent stake for the Ranigunj block. Deep Industries and a consortium led by Jindal Petroleum (a JSPL group company) were offered a 10 per cent stake each, in North Karanpura and Bokaro blocks, respectively, Business Line added.