Essar Energy Plc (ESSR.L), the India-focused integrated energy company, announced that it has been granted phase III environmental clearance by the Government of India's Ministry of Environment and Forests for its coal bed methane or CBM gas field at Raniganj, West Bengal, allowing it to increase drilling to 650 wells.
The company stated that the environmental clearance allows the full field development of the Raniganj block, excluding forest area, and will enable the company to increase production to the targeted level of around 3 million standard cubic metres of gas per day or scmd, up from around 60,000scmd currently.
So far, 135 wells have been drilled at Raniganj, of which 57 are in production. The drilling programme will now be accelerated, the company said.
Raniganj, in which Essar Energy has a 100 per cent interest, is a 500km2 block with total proven and probable reserves (2P), independently evaluated by consultants Netherland, Sewell and Associates Inc, of 113 billion cubic feet (bcf) gross (3.2 billion cubic metres), or 18.8 million barrels of oil equivalent. There are also best estimate contingent resources (2C) of 445bcf gross, or 74.1mmboe and 297bcf gross, or 49mmboe, of current best estimate prospective resources.
The company noted that it is awaiting a Government decision on an appropriate commercial sales price for Raniganj, but in the meantime will continue to sell gas from the block at the approved test sales price.
The company noted that it has already contracted gas sales from Raniganj to local industrial customers. The majority of the gas sold from the project is being sold to a new fertiliser plant being built approximately 30km from the Raniganj field.
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