The goverment sign production sharing contracts (PSC) for the exploration of gas in nine areas with Relaice Energy Ltd-led Geopetrol International Inc for four blocks,including Australia
Australia's Arrow Energy-led group for three blocks, while Coalgas Mart-Deep Industries joint venture for two blocks.
Recently, Cabinet Committee on Economic Affairs had awarded 10 coal bed methane blocks, but contracts for only nine have been finalised. The agreement for one block with BP of UK has not been firmed up, official sources said.
An REL official said the CBM venture for the Anil Ambani Group was part of its strategy of backward integration. Being a power producer, it was logical for the group to foray into fuel side. It is a good and efficient fuel for generating power, he added.
While REL would look after exploration side, REL would be esponsible for utilising the CBM for power generation. Geopetrol is the operator of the consortium.
We will be investing close to Rs 100 crore in the initial phase of exploration in the four CBM blocks, the official said, sounding optimistic about finding gas.