Ruia brothers-led Essar Oil and Gas Exploration and Production (EOGEPL) on Thursday announced that it has signed a 15-year Gas Sale and Purchase Agreement (GSPA) with state-run gas utility GAIL.
The Essar Group subsidiary said in a statement here that GAIL had won the bid for the contract which will help EOGEPL monetise its entire coal bed methane (CBM) production of 2.3 million standard cubic metres per day (mscmd) from the Raniganj East block.
"The GSPA entails a 15-year gas supply contract whereby the company will be able to monetise its entire coal bed methane (CBM) production of 2.3 mmscmd from the Raniganj East block at a globally competitive price," Essar said.
"GAIL emerged winning bidder by offering to pay gas prices linked to three-month average price of Brent crude. The discovered price will lead to a substantial increase in the Company's (EOGEPL) topline," it added.
Of the 500 wells to be dug at the Raniganj East CBM block, EOGEPL has already completed drilling of 346 CBM wells.
"The Raniganj East block is India's most prolific CBM block that has achieved gas production of more than 1 mscmd, which will be gradually scaled to 2.3 mmscmd," it said.
Commenting on the development, EOGEPL Chief Executive Vikas Tawde said: "On an upside, shale development would benefit greatly due to the synergy with CBM operations, like water requirement, and the gas evacuation and handling facilities.
"Initial estimates indicate that we would need to invest close to Rs 7,000 crore for developing the shale gas potential in the block to recover about 1.6 tcf (trillion cubic feet) from the field."
Further development of CBM in the Damodar Valley Basin of eastern India is imminent with the likes of ONGC, GEECL and Coal India also joining the search for CBM and shale, the statement added.
RBI crackdown triggers crash in Kotak Bank shares
The RBI had, on Wednesday evening, barred Kotak Mahindra Bank, with immediate effect, from taking on new customers and issuing fresh credit cards.
Kotak Bank promoter donated electoral bonds worth Rs 60 cr, but RBI cracks down on lender to protect customers
Infina Finance, one of the promoter group entities of Kotak Mahindra Bank which was barred by the RBI on Wednesday from onboarding new customers, had donated electoral bonds worth Rs 60 crore to the BJP.
RBI lists 6 factors powering India’s take-off to become world’s 3rd largest economy
While India’s recent growth performance has surprised many, triggering a flurry of upgrades from financial institutions such as the IMF, the RBI bulletin released on Tuesday cites six factors that will propel the country to become the world’s third-largest economy.
Sensex gains more than 300 points
BSE Sensex gained more than 300 points on Monday as geopolitical tensions eased and crude oil prices declined.
Direct tax collections shoot past budget target by Rs 1.35 lakh cr in 2023-24
The net direct tax collections, comprising corporate tax and personal income tax shot up to Rs 19.58 lakh crore in 2023-24, compared to Rs 16.64 lakh crore in the preceding financial year, representing a double-digit increase of 17.7 per cent.
Elon Musk confirms not coming to India amid crucial Tesla quarter results
Elon Musk, on Saturday, confirmed that he will not visit India this month amid crucial Tesla quarterly results and will possibly visit the country later this year to announce his investment plans.
How Adani Ports unlocked growth potential of India's seaports after acquisitions
India's largest private port operator, Adani Ports and Special Economic Zone Ltd (APSEZ), announced earlier this month that it handled a record 420 MMT (million metric tonne) cargo in FY24 (including international ports), setting a new milestone in its journey.
Sensex, Nifty witness worst week since March 15 amid Iran-Israel conflict
Intraday, the benchmarks declined nearly 1 per cent amid investor concerns that the West Asia turmoil might escalate to a war. During the day, the Nifty slipped as much as 0.99 per cent to 21,777.65, while the Sensex fell 0.93 per cent to 71,816.46 before bouncing back.