Oil & Natural Gas Corporation Ltd.

State-run Oil and Natural Gas Corporation (ONGC) is planning to farm out around 35-45% of its stakes in four coal bed methane (CBM) gas blocks, including one in West Bengal and three in Jharkhand, to ‘experienced’ energy firms. Three entities, viz. UK-listed Great Eastern Energy Corp, Brisbane-based Dart Energy and a consortium of Jindal Steel and Power and Deep Industries - have so far placed their bid for these blocks.

Uptill now, the company has spent about Rs 510 crore on the four blocks, which the winning bidder might have to pay in proportion to the stake. Further, the company will be selling stake in one block to two players, who know much about CBM exploration.

Of the four assets, Jharia and Ranigunj (North) were awarded to ONGC on nomination basis. Bokaro and North Karanpura were awarded during the first round of CBM biding in 2000. ONGC is the operator in the Raniganj north block, with a 74% stake, while state-run miner Coal India (CIL) holding the remaining stake. At Jharia, the company holds a 90% stake, with remaining 10% stake being held by Coal India. At Bokaro and north Karanpura, too, it is the operator, with 80% each, however, in these two blocks, state-run oil marketing firm Indian Oil Corp holds the remaining stakes.