ONGC May Get Another Six Months to Drill Raniganj CBM Block

India’s oil ministry is expected to grant ONGC another six months to drill the required number of wells and draw plans for producing coal bed methane (CBM) from the Raniganj-north block in West Bengal.

The Economic Times says that this will be the third extension for the project in which the state owned energy firm holds 74% stake. The remaining stake is held by Coal India.

ONGC is yet to start commercial production from the blocks whereas private firm GEECL is already producing gas from Raniganj-south and Reliance Industries and Essar are set to start commercial production after the oil ministry approves CBM prices for their respective blocks. 

Company officials said the delay in completion of wells in Raniganj block was because CBM prospective area overlapped with Ichhapur and Moira-Madhujore coal mines. "There was also land acquisition problem due to upcoming Bengal Aerotropolis project," an ONGC official told Economic Times.