(PTI)
State-owned Oil and Natural Gas Corp (ONGC) wants a gas price of at least USD 8.35 to break even on producing coal-seam gas (CBM) from Raniganj block in West Bengal after part of its acreage was taken away for building of an airstrip. ONGC does not want to relinquish the block which holds some 43 billion cubic metres of in-place reserves and is instead looking at alternate options like deviated drilling from outside the airstrip.
Of the 350 square kilometer area in North Raniganj coal-bed methane (CBM) block, 7.05 sq km is part of an Airport City Project (BAPL). Top officials said the project BAPL overlaps 7.05 sq km. To compound the problem, Ardhagram coal block falling in assessment area has been allotted to OCL Iron Steel. “This has reduced the scope for ONGC to produce CBM gas from the block,” an official said.
