Essar, Arrow, Great Eastern to Invest $158 million in CBM Blocks in India
Essar Oil, Australia’s Arrow Energy and Great Eastern Energy will invest USD 158 million in seven coal bed methane (CBM) blocks, for which contracts were signed with the government on Thursday.
These (seven) blocks located in the states of Assam, Jharkhand, Orissa, Madhya Pradesh, Chattisgarh and Tamil Nadu would bring committed investment of USD 158 million,' Minister of State for Petroleum and Natural Gas Jitin Prasad said at the signing of Production Sharing Contracts (PSC).
Essar Oil, which was the biggest winner of the recently concluded fourth round of CBM bidding, signed PSCs for four blocks. Arrow Energy signed contracts for two CBM blocks through two separate joint ventures with Oil India Ltd and Tata Power, while one block went to the Great Eastern Energy Corporation.
India imports 80 per cent of its crude oil requirement. The CBM, along with gas output from the Krishna Godavari basin, would help reduce the country’s import dependence.
Source: Engerypedia News