Coal bed methane output at the Raniganj block of Essar Oil has increased to 1 million scmd, making it the first in India to achieve the milestone, and the company now aims to scale it up to 3 million scmd by mid-2017-18, its head of exploration and production business Manish Maheshwari told ET. <\/p>\n
Billionaire brothers Shashi and Ravi Ruia-promoted Essar Oil sees its next big growth in the E&P business to come from coal bed methane gas production, where it has already become the country’s largest producer. <\/p>\n
“By end of the current financial year we would be producing 2 million scmd and by middle of 2017-18 we should be at 3 million scmd. We only need to make some incremental investment for drilling because the infrastructure that we have created is capable of handling 3 million scmd,” said Manish Maheshwari, chief executive officer-E&P. <\/p>\n
The company has so far invested Rs 3,300 crore in the Raniganj project. Besides this project, Essar holds other assets aggregating to more than 2,700 sq km of contract area. <\/p>\n
Essar Oil plans to bid for ‘Discovered Small Fields Bid Round-2016’ being offered by the government. It will do so in consortium with other partners. <\/p>\n
“The bids for small discovered field is a progressive step for the E&P industry in the country. We have sought the data for these fields and as soon as we get it we will evaluate and bid in consortium,” Maheshwari said. <\/p>\n
India has initiated the auction of 67 discovered small oil and gas fields, the first such auction in five years. This will be a test for the recent policy measures such as the switch to revenue-sharing model from the production sharing model and the freedom given for gas pricing to lure investors. <\/p>\n
Energy firms across the world have slashed capex worth billions of dollars and reduced manpower in response to the fall in crude oil prices. The muted prices had also cast a shadow on the bids for these small fields given the concerns over their financial viability amid low rates. The recovery in crude oil prices to more than $47 a barrel has made the government confident of good response for these fields since companies are likely to find the projects lucrative if crude oil trades at $45-50 a barrel.<\/p>\n","protected":false},"excerpt":{"rendered":"
Coal bed methane output at the Raniganj block of Essar Oil has increased to 1 million scmd, making it the first in India to achieve the milestone, and the company now aims to scale it up to 3 million scmd by mid-2017-18, its head of exploration and production business Manish Maheshwari told ET. Billionaire brothers Shashi and Ravi Ruia-promoted Essar Oil sees its next big growth in the E&P business to come from coal bed methane gas production, where it has already become the country’s largest producer. “By end of the current financial year we would be producing 2 million […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-73116","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/73116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=73116"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/73116\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=73116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=73116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=73116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}