ONGC, Petrowatch1 Jun 2017 12:26
Authority of India (SAIL) is in talks with ONGC for CBM supplies to its Bokaro Steel Plant in Jharkhand as it prepares conversion of dirty coal-fired blast furnaces to clean gas. "Informally ONGC has told us production will begin within a year," adds SAIL. "For the past one year we have been talking." With its 35,000 strong workforce spread across 11-sq km the 4.5m t/y Bokaro liquid steel plant is among India's largest and potentially a prize catch for CBM from BK-CBM-2001 which ONGC (80% and operator) shares with IndianOil (20%). "Only with more information from ONGC on (CBM) availability, pipeline connectivity and price can we go ahead," adds our source. ONGC's annual report for 2015-16 promised first CBM from BK-CBM-2001 this fiscal or before March 31 (2018) with projected 'peak' output of 900,000 cm/d and 750,000 cm/d 'plateau' output from 141 planned wells. Since then the number of (planned) wells has increased to 155 and the original Rs823cr ($137m) drilling budget has increased by 20%. ONGC and IndianOil directors need to approve the cost escalation before awarding a drilling contract to UK-listed Greka Drilling