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Essar Oil to invest another Rs 2000 crore in the Ranigunj (East) CBM Block: Report

16 Jul 2012 Evaluate

Essar Oil is reportedly planning to invest an additional Rs 2,000 crore in the Ranigunj (East) coal-bed methane (CBM) block near Durgapur in West Bengal. The company for this purpose has already earmarked Rs 8000 crore investment to the proposed project in Bardhaman district. The company produces about 25,000 standard cubic meters per day of methane gas from 15-20 wells in Raniganj and sells to customers at an ad-hoc price of $6.25 per unit.

In view of the oil ministry's doubts over tendering process conducted about 11 months back, Essar Oil, a week ago, offered to invite fresh bids to determine the price of coal bed methane (CBM) produced from its Raniganj block. The oil ministry has blamed Essar for violating the rule of dealing with potential customers on an arm's-length basis. However, the oil ministry, secretaries after raising objection and holding back approvals for nine months, has forwarded the contentious issue of pricing methane gas produced from coal seams by Essar Oil and Reliance Industries to an empowered panel of secretaries.

Peers
Company Name CMP
Reliance Industries 1309.35
Indian Oil Corp. 143.45
BPCL 306.40
HPCL 392.05
MRPL 154.10
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