Essar Oil and Gas Exploration and Production will submit a proposal for shale gas exploration from the Raniganj East block in West Bengal to the steering committee of the block by end of this month, according to a top official of the company.
He said with the completion of price discovery process for the coal-bed methane (CBM) produced from the Raniganj East block, the firm is expecting to touch the revenue of Rs 600 crore in FY19. It aims to double the revenue in the next two-three years.
The block has shale gas potential of 7.7 tcf (trillion cubic feet), out of which recoverable is 1.5 tcf. “The Simultaneous Exploitation Policy, where licensees for any hydrocarbons can exploit any hydrocarbon resources, is expected soon,” the official said, adding that the company would submit the exploration proposal for shale gas to the steering committee of the (Raniganj East) block by end of March.
The steering panel has representatives from the petroleum ministry, Directorate of Hydrocarbons, and from operators as well, Essar Oil CEO Vilas Tawde said.
The firm is currently producing over 1 million cubic metre gas per day and has so far invested Rs 4,000 crore in its Raniganj project for the production of CBM. It has drilled 350 wells and is expecting to drill another 150 wells in the next few years with an investment of `900 crore. he said.