ADAG gets govt call on CBM blocks
Sources said formal award letters had also been sent to Australia's Arrow Energy for three CBM blocks, Coalgas of the US for two blocks and British Petroleum for one block.
By PTI |
NEW DELHI: Anil Dhirubhai Ambani Group has received formal communication from the central government on allotment of four coal bed methane (CBM) blocks.
The ministry of petroleum and natural gas, on October 5, wrote to the consortium of Reliance Energy Ltd (REL)-Reliance Natural Resources Ltd (RNRL)-Geopetrol International Inc confirming the government's decision to award block SP(North)-CBM-2005/III, KG(E)-CBM-2005/III, BS(4)-CBM-2005/III and BS(5)-CBM-2005/III.
Sources said formal award letters had also been sent to Australia's Arrow Energy for three CBM blocks, Coalgas of the US for two blocks and British Petroleum for one block.
The CBM block awardees would have to submit a bank gaurantee for the committed Minimum Work Programme, based on which the blocks were awarded.
The bank guarantee would be the oil regulator DGH's cost estimates or budget estimates of the contractor, whichever is higher, the ministry letter to REL-RNRL-Geopetrol said.
In addition, the consortium would also have to spend a minimum of USD 100,000 on "any other work considered necessary" on the block.
"As the consortium's bid has been evaluated by giving points for accelerating implementation of the Minimum Work Programme, no extension would normaly be permissible, except on the ground of force measure conditions," the letter said.
The government will shortly invite the awardees of the CBM-III round for signing of a production sharing contract (PSC), sources said.
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