Great Eastern Looks to Extend Footprint

Great Eastern Energy Corporation , the Indian natural gas from coal-bed methane producer, is eyeing acquisitions abroad.

"We are concentrating in South East Asia, Indonesia and South Africa,” Yogendra Kumar Modi, chairman and chief executive officer of GEECL, told Financial Chronicle on Tuesday.

Great Eastern plans to partner with local companies in these countries while bidding for CBM blocks. “This (partnering local companies) will help us to handle issues related to local government and public better,” Modi added, without divulging names of companies GEECL with whom it has commenced negotiations.

Raniganj presently produces 160,000 cubic metres of gas daily from 50 wells. Peak production of three million cubic metres of gas daily from 300 wells is expected by 2014-15. The block is estimated to have two trillion cubic feet of gas-in-place that can be pumped out over 30 years.

Government has allowed GEECL to sell gas from Raniganj block at $ 6.7 per million British thermal units (mBtu). When asked for how long this price is fixed, Modi said until company approaches government for a revision of this price, it prevails.

Source: Financial Chronicle