Anil Ambani group awarded four coal bed methane blocks
By Our Corporate Bureau | 09 Oct 2006
Mumbai: The ministry of petroleum and natural gas has confirmed the award of four coal bed methane (CMB) blocks to the Anil Dhirubhai Ambani Group. The ministry has sent a formal communication to the consortium comprising Reliance Energy Ltd (REL), Reliance Natural Resources Ltd (RNRL) and Geopetrol International Inc., confirming the award of block SP(North)-CBM-2005/III, KG(E)-CBM-2005/III, BS(4)-CBM-2005/III and BS(5)-CBM-2005/III on 5 October.
The ministry has also sent formal letters confirming the award of three CMB blocks to Australia's Arrow Energy, two blocks to Coalgas of the US and one to British Petroleum.
The bidders would have to submit a bank guarantee for the committed minimum work programme. The bank guarantee would be based on the oil regulator directorate general of hydrocrabons' cost estimates or budget estimates of the contract. In addition, the consortium would have to spend a minimum of $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 normally be permissible, except on the ground of force majeure conditions," the letter said.
The government is expected to invite the awardees of the CBM-III round for signing of production sharing contract (PSC) soon, sources said.