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Essar Unit Plans $100mn Investment to Boost Raniganj CBM Production

Essar Oil and Gas Exploration & Production Ltd (EOGEPL), the upstream arm of the Essar Group, is set to roll out a new drilling programme involving an estimated investment of about $100 million at its Raniganj East coal bed methane (CBM) block in West Bengal.

The proposed investment marks the next phase of development at Raniganj East, where EOGEPL currently produces around 1 million standard cubic metres per day (MMSCMD) of natural gas, making it the largest CBM-producing block in India.

“Till date, EOGEPL has invested over Rs. 60 billion in developing the Raniganj East CBM block, including the drilling of 454 wells and the construction of more than 350 km of pipeline infrastructure. Over the last few years, the company has spent an additional Rs. 6 billion to drill around 100 wells, all of which are now on production,” said Pankaj Kalra, CEO, EOGEPL.

The Raniganj East block is estimated to hold around 4 trillion cubic feet (TCF) of in-place CBM resources. The cumulative investment in wells, pipelines, and surface facilities with gas handling capacity of around 3 MMSCMD has created significant headroom for future production growth.

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