ONGC Likely to Sell Stake in CBM Blocks by Month End

Oil and Natural Gas Corporation will likely sell stake in its four CBM blocks to bidders by the end of this month when company’s board of directors would meet.

In a report published Monday, Business Standard said quoting Sudhir Vasudeva, chairman and managing director that ONGC is evaluating the bids and the state owned energy firm could give out up to 30 per cent stake and look at joint operatorship of the blocks.

The newspaper wrote that at its CBM blocks, ONGC has been facing various issues such as not being able to manage land acquisition issues and the cycle speed of rigs, among others.

"We are isolated at these blocks, as these are standalone ones. Clearly, there are issues and we want to bring in a player who could be a joint operator," an ONGC board member told the newspaper.

Great Eastern Energy Corporation Ltd, Dart Energy and Essar Energy, have bid for the stake. ONGC holds the four CBM blocks in Jharia, Bokaro, Karanpura and Raniganj.

ONGC estimates its Jharia block holds around 85 billion cubic metres of gas reserve, Karanpura 62 bn, Bokaro 45 bn and Raniganj 43 bn cu metres.