Ruia-owned Essar Oil and Gas Exploration and Production Ltd (EOGPL) is planning to more than double Coal Bed Methane (CBM) production from its flagship Raniganj East block to 2.3 Million Standard Cubic Meter per day (mmscmd) from the current 1 mmscmd, a senior company executive said.
“We plan to invest around Rs 900 crore in the coming 18 months to drill an additional 152 wells in the block. Our aim is to more than double the production from the block to 2.3 MMSCMD. We were able to generate more than Rs 210 crore as revenue from our oil and gas business last financial year and expect to generate over Rs 400 crore in the current fiscal,” EOGPL Chief Executive Officer (CEO) Vilas Tawde told ETEnergyWorld in an interview.
The company is currently selling its entire CBM production from the block located in West Bengal to state-owned natural gas utility GAIL (India) at an average price of $8.164 per Million British Thermal Unit (MMBTU) on Net Calorific Value basis under a 15-year gas supply contract. Read More