Oil and Natural Gas Corp and its partners will invest Rs 823 crore to produce natural gas from coal seams of its Bokaro block in Jharkhand from 2017-18, the state-owned firm’s Chairman Dinesh K Sarraf has said.
ONGC is the operator of the Bokaro coal-bed methane (CBM) Block BK-CBM-2001/1 with 80 per cent stake while the remaining 20 per cent is with Indian Oil Corp (IOC). “Investment decisions have been taken by ONGC Board for development of Bokaro CBM Block (BK-CBM-2001/1) at a total project cost of Rs 823 crore,” Sarraf said in the company’s latest Annual Report for 2015-16. CBM is a form of natural gas extracted from underground coal beds, and ONGC’s share in this project would be Rs 658.62 crore. “The project envisages coal bed methane gas production of 4.068 billion cubic meters in 20 years with a peak of 0.9 million standard cubic meters per day and a plateau production of 0.75 mmscmd,” Sarraf said, adding that the “production from this project is expected to commence during 2017-18”.