Tata Power-Arrow Energy consortium awarded Satpura CBM block

MUMBAI: Tata Power, India's largest integrated private power utility, along with its consortium partner, Arrow Energy, has been awarded the Satpura CBM block in Madhya Pradesh during the CBM IV bidding round.

The consortium had submitted bids for three CBM blocks during the bidding conducted by the Director General of Hydrocarbons in October 2009. On June 24, the Cabinet Committee on Economic Affairs (CCEA), had approved award of 7 out of 10 blocks offered in the bidding.

Arrow Energy with an 80 per cent stake will be the operator of the block. It plans to drill 15 core holes and 2 pilot wells in the first two-years under the Phase-I exploration and 21 pilot wells in phase-II, a press release issued here stated.

Initial production is expected to start from 2014. Arrow and Tata Power will jointly explore options for the best use of the CBM gas produced from the block, it said.