Arrow, GAIL, EIG

Mumbai, Oct 16 (UNI) Gail India-led consortium of Arrow Energy (India) Pty Ltd and EIG Energy Infrastructure Group A B Ltd have been awarded three CBM blocks under the recent three Round of Coal Bed Methane bidding round in India by the Union Government.

Announcing this, GAIL India noted that the the Tata Power Company Ltd was also a part of the consortium as fourth partner in three out of the seven blocks bid. The consortia had bid for seven out of a maximum of ten blocks offered in the bid round which closed on June 30, 2006.

The consortia won the three blocks amidst stiff competition from various major domestic and international players. Out of the three blocks, one block is in Rajmahal Coal field, Jharkhand and the other two blocks are in Mand Raigarh and Tata Pani Ramkola Coal fields, Chhattishgarh.

As per DGH the resource potential of the Rajmahal blocks is 5.5 TCF and for the Mand Raigarh and Tatapani-Ramkola blocks are 4.2 TCF and 1.9 TCF respectively.

The estimated expenditure for the first phase of exploration of the three blocks awarded is in the tune of US dollars 16 million (Rs 72 crore) out of which the Company's share would be to the tune of six million (Rs 27 crore). Exploration activities are expected to start early next year.

The total expected capital expenditures for entire project (100 per cent) with project duration assumption of 20 years (5 years Exploration + 15 years Production) is in the tune of US$ 500 to 600 million (Rupee-wise 2250 to 2700 crore) out of which the Company's share is in the tune of US$ 200 to 250 million (Rs 900 to 1125 crore).

Earlier (April 12, 2006) an MoU was executed between the Company, Arrow Energy NL, the leading CBM player in Australia holding substantial CBM acreages in Australia and EIG Energy Infrastructure Group A B, Sweden for joint cooperation in the field of CBM in India, Australia and third countries of mutual interest.

The consortium is also committed to technology transfer in the field of CBM to India. As an initial arrangement the Company plans to depute its technical Manpower to Arrow in Australia to gain technical expertise through work association in Australian CBM.

The Company and EIG are in the process of evaluating CBM Assets of Arrow in Australia for possible investment.

UNI SN SSS SKB2008