Brisbane-based Dart Energy may pick up 10 to 25 percent stake of Oil and Natural Gas Corp (ONGC) in the latter’s four coal-bed methane (CBM) blocks.
CBM is natural gas trapped within coal formations, which is extracted by drilling holes into the seams. In order to fast-track gas production with the help of private sector firms, ONGC wants to rope in partners by giving them stake in the four blocks. It had faced land acquisition problems and rig availability issues that has delayed production.
The state-run firm is learnt to have finalised partners for producing gas from CBM in the Jharia, Bokaro, North Karanpur and Raniganj blocks.
The official said Dart will get 25 percent in the Jharia, North Karanpur and Bokaro block while in Raniganj it will get 10 percent. In Raniganj, London-listed Great Eastern Energy Corp (GEECL) will be the lead partner with 25 percent interest.
CCLE, Prabha Energy and MMS would take 10 percent in Jharia, North Karanpur and Bokaro blocks, where Dart would be the lead partner, he said.
ONGC, which has so far spent about Rs 510 crore on the four blocks, had last year offered to give out up to 35 percent stake through a tender. However, the Oil Ministry asked the company to cancel the tender as only three players bid.
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