ONGC Hopeful of Selling Stake in CBM Blocks This Fiscal

Indian state owned firm Oil and Natural Gas Corporation (ONGC) expects to complete sale of minority stakes in three of its coal bed methane (CBM) assets located in the eastern Indian state of Jharkhand and West Bengal to private players this fiscal, reports Business Line newspaper.

According to the newspaper, the company plans to sell a 25 per cent stake each to Great Eastern Energy Corp and Deep Industries, respectively, in Ranigunj and North Karanpura blocks.

In Bokaro, the company is expected to sell a 35 per cent stake to Dart Energy (25 per cent) and Jindal Petroleum (10 per cent).

ONGC currently holds 90 per cent operating interest in Ranigunj and 80 per cent each in Bokaro and North Karanpura. Coal India (Ranigunj) and Indian Oil (Bokaro and North Karanpura) holds the residual stakes as participatory interests, adds Business Line.

Prospective partner were identified in May last year but share transfer was delayed as deal was not finalised, says Business Line. In addition to that, the partners wanted ONGC to reduce its overhead in assets, as a precondition to enter the deal.

The newspaper says that ONGC has agreed to bring down its manpower in each of the blocks in a phased manner to keep a leash on expenses.

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