Professional Documents
Culture Documents
2. CBM in India
3. Policy Framework
Unconventional Hydrocarbons
Resource Management
MoP&NG
CMM
UCG
CBM
Shale
MOC
“Typical” CBM Well Production Profile
Gas
Water
Time
Unconventional – Marginal economics
1. Pricing
2. Gas grid and Gas Market development
3. Resource Estimation needs revisit
4. Simultaneous exploitation
5. Land Acquisition
6. Water handling problems
7. Grant of statutory clearances
Chronology of CBM in India
In order to harness CBM resources in the country , CBM Policy was
formulated in 1997
MoU was signed on 09.09.1997 between MoP&NG & MoC
Provides framework to act in co-operative manner for development of
CBM
MoPNG to administer the CBM projects
Coal/Lignite Resources are divided into areas for CBM development:
Coal deposit up to 300m (with and without Mining leases)
Coal deposit below 300m
DGH was made the implementing agency
CBM Policy: Terms of the Offer
Biddable Production Level payment at rate committed by
Revenue sharing model bidder. (2.5% flat PLP for nomination CBM Blocks)
No upfront signature
Commercial bonus payable at declaration of commercialty
bonus
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CBM & NELP Policy
CBM NELP
• No Cost recovery • Cost Recovery
• Production Level Payments • Profit Petroleum based on
(PLP) IM
• Royalty • Royalty
• BEC
• BEC
– WP
– WP
– Fiscal (IM & Cost recovery)
– Production Level Payment
– Technical competence
– Technical competence
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State-wise distribution of CBM Resources
Prognosticated CBM Established
Sl. Prognosticated CBM
State Resource CBM Reserves
No. Resource (in TCF)
(in BCM) (in TCF)
1 Jharkhand 722.08 25.5 1.916
2 Rajasthan 359.62 12.7 0
3 Gujarat 351.13 12.4 0
4 Odisha 243.52 8.6 0
5 Chhattisgarh 240.69 8.5 0
6 Madhya Pradesh 218.04 7.7 3.65
7 West Bengal 218.04 7.7 4.33
8 Tamil Nadu 104.77 3.7 0
Telangana & Andhra
9, 10 99.11 3.5 0
Pradesh
11 Maharashtra 33.98 1.2 0
12 North East 8.50 0.3 0
Total CBM Resource 2599.48 91.8 9.9
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CBM Bidding Rounds
No. of Blocks Offered No. of bids received Blocks Awarded
60 54
50
40
27
30
20 16
14
10 10 10
8 8
10 6 7
5
0
CBM-I CBM-II CBM-III CBM - IV
30 Blocks awarded through 4 Bidding Rounds & 3 Blocks were awarded on Nomination
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Phases in CBM Contract
• Phase-I: Exploration phase
– Duration: 2-3 years + 3 extensions of 6 months under CBM extension policy
– Major activity: Drilling of Coreholes and Test wells
• Phase-II: Pilot Assessment Phase
– Duration: 3-4 years + 3 extensions of 6 months under CBM extension policy
– Major activity: Drilling of Pilot wells, Environmental studies, Techno-economic
Evaluation, Market survey
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Other Success Stories - Sohagpur West | North Karanpura | Bokaro | Jharia
Exploration and Production Regime in India
State Monopoly Liberalization of E&P Sector
(1997- 2009)
Public Sector New Discovered
Upstream Oil 9 NELP and 4 CBM rounds. Domestic Gas Small Field
Companies 254 exploratory and 33 CBM blocks Pricing Policy
through competitive bidding Guidelines
80%
2. Bid yielding highest NPV will get 80 marks and rest bids
would be scored on pro-rata basis
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Thank you