ONGC May Bring in Multiple Partners for CBM Blocks

ONGC is expected to bring on multiple joint ventures for four of its coal bed methane (CBM) blocks as a possible risk-sharing strategy.

Bloomberg UTV has reported Tuesday that ONGC may be in advanced talks with Essar Oil, Reliance Industries and Great Eastern Energy for partnership to develop these blocks.

These four blocks together have estimated reserves of about 6 trillion cubic feet of gas. 

The report said that ONGC is likely to retain ownership of these blocks and may hold more than 40% stake in each of these blocks.

The state owned energy firm currently owns CBM blocks in Jharia, Bokaro, North Karanpura and Ranigunj.

These four blocks require an investment of about $2 billion to produce gas.