ONGC Looking to Work with Essar Oil to Develop CBM Blocks in East India

India’s state owned ONGC may collaborate with private sector firm Essar Oil to develop coal bed methane (CBM) blocks in eastern Indian states of West Bengal and Jharkhand, according to Businessline, a financial daily.

ONGC has not be very successful in its endeavour to exploit CBM resources in India. In 2013, the company tried to rope in four partners but the attempt was a failure. On the other hand, Essar Oil has become India’s biggest CBM producer with output in excess of 1-mscmd.

Sources told Businessline say ONGC is now keen to replicate Essar’s success story in Ranigunj, North Karanpura, Bokaro and the only producing asset of Jharia.

State-owned Coal India has participatory interest in Jharia and Ranigunj blocks.

While the nature of the collaboration is not known, sources say active negotiation is on between the companies.

The primary focus is to use Essar’s proven technical expertise in turning the ONGC fields productive, the newspaper said.