Essar Energy granted permission to increase drilling at Raniganj

Integrated energy giant Essar Energy has been granted phase III environmental clearance for its coal bed methane gas field at Raniganj, West Bengal, which allows it to increase drilling to 650 wells on the block.

Integrated energy giant Essar Energy has been granted phase III environmental clearance for its coal bed methane gas field at Raniganj, West Bengal, which allows it to increase drilling to 650 wells on the block.

This will enable it to build-up production to the targeted level of around three million standard cubic metres of gas per day (scmd), up from around 60,000 scmd currently.

So far, 135 wells have been drilled at Raniganj, of which 57 are in production. The drilling programme will now be accelerated.

Naresh Nayyar, Essar Energy's Chief Executive, said: "The final phase III environmental approval for Raniganj is an exciting milestone and is the key to us reaching peak production. We expect to grow the coal bed methane business significantly in the coming years as we utilise the learnings from Raniganj to develop our other four blocks."

The company added that it is awaiting a government decision on an appropriate commercial sales price for Raniganj, but said in the meantime will continue to sell gas from the block at the approved test sales price.

NR

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