New Delhi: Essar Oil Ltd, a unit of the London-listed Essar Energy Plc, plans to infuse Rs 28.66 billion to develop more production wells and lay transportation pipeline network, among others, under the third phase of Raniganj Coal Bed Methance (CBM) project in West Bengal, media reports said, citing a report.
At Raniganj, Essar Oil's first CBM block under development, 33 wells are currently producing about 35,000 standard cubic meters per day of gas. The company has projected CBM production at 5 million cubic meters per day from this project, the company said in the report it submitted to the state government for environmental clearance.
"Essar Oil, as part of its Phase 3 development programme, plans to drill an additional 650 development and production wells, undertake installation of 8 Group Gathering Stations and one Main Compressor Station and laying of inter-connecting and transportation pipeline network for CBM gas production, collection, transportation and sale," the report said.
Essar Oil signed the production sharing contract with the state government in 2002 for RG (East)-CBM-2001/1 block for CBM, 100% owned by it. Later in 2005, the state government granted a license to the company for exploratory operations.
Essar Oil drilled 12 core holes and 15 test wells in phase-I and drilled 58 pilot-cum-production wells, installed 3 group gathering stations and also a pipeline for transportation of CBM gas in phase-II.
Further, the company said it will require approximately 2 acres of land for each production facility.
The proposed wells will be drilled in the form of pads and one pad can accommodate up to five development-cum-production wells.
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