Coal Bed Methane - Fiscal Terms

Experience & Opportunities For Methane Projects in India

DirectorateDirectorate GeneralGeneral ofof HydrocarbonsHydrocarbons NewNew Delhi,Delhi, IndiaIndia PRESENTATION HIGHLIGHTS ¾ Major coal & lignite fields of India ¾ Coal & lignite resources of India ¾ CBM resources of India ¾ Market and Infrastructure ¾ Favorable geological factors for development of CBM ¾ CBM policy initiative in India ¾ Current activities in CBM exploration & production ¾ Prospects of CBM in the awarded blocks ¾ Expected production potential of CBM in India ¾ Major Forthcoming CBM Exploration Opportunities ¾ Development of CMM/ AMM ¾ Concluding Remarks COALCOAL ANDAND LIGNITELIGNITE FIELDSFIELDS OFOF INDIAINDIA && THETHE RESOURCESRESOURCES BASEBASE MAJOR COAL & LIGNITE FIELDS OF INDIA

GONDWANA COALFIELDS Gondwana Coalfields n 20 Ref. Coalfield/Coal Belt Ref. Coalfield/Coal Belt a TertiaryTertiary LignitefieldsCoal // Lignite t s Lignite Fields No. No. i k a MAHANADI P C h i n a 1. Raniganj 8. Ib-valley N VALLEY Delhi e p 15 2. JhariaDAMODAR 9. Talchir BELT 19 a l VALLEY NARMADA r 3. Bokaro 10. Satpura 18 14 a BELT BELT m 5 4 2 n 4. N. Karanpura 11. Wardha PRANHITA 6 a 17 y GODAVARI 7 13 10 3 1 M 5. Singrauli 12. Godavari BELT 7 8 SON 9 Kolkata 6. SohagpurVALLEY 13. Birbhum 11 BELT Mumbai 7. Korba 14. Rajmahal 12 Bay Of Arabian Bengal TERTIARY COAL / LIGNITE FIELDS Sea Ref. Coal/Lignite Field Ref. Coal/Lignite Field Chennai

NicobarNicobarNicobarNicobarNicobarNicobarNicobarNicobar No. No. 16 16 15. Assam-Meghalaya 18. Barmer-Sanchor Islands Islands Islands Islands Islands Islands Islands Islands 16. Neyveli 19. Bikaner Andaman Andaman Andaman Andaman Andaman Andaman Andaman Andaman Andaman 17. Cambay 20. Jammu & Kashmir RESOURCERESOURCE BASEBASE

Area in sq.km.

50000

40000 48500

30000 35680

20000 21000 15000 10000

0 Gondwana and Tertiary The coal Measures The coal Measures The coal measures Coal Basins at depth > 300 at depth < 300m RESOURCERESOURCE BASEBASE

Total Area Covering Indian Gondwana and : 48500 sq.km. Tertiary coal basins The prognosticated coal bearing area from : 35680 sq.km. the known coalfields The area of coal bearing Barakar measures : 21000 sq.km. occurring at depth below the thick cover of younger rocks Coal bearing area spread over 44 Gondwana : 15000 sq.km. and 16 Tertiary coalfields containing economically viable coal resources of the country COAL / LIGNITE RESOURCES OF INDIA (AS ON 1.1.2005)

A. COAL B. LIGNITE

S. RESOURCES S. STATE RESOURCES STATE NO. (BILLION TONNES) NO. (BILLION TONNES)

1 WEST BENGAL 27.40 1 RAJASTHAN 120 2 JHARKHAND 72.36 2 GUJARAT 100 3 MADHYA PRADESH 19.23 3 TAMIL NADU 30 4 CHATTISGARH 39.97 TOTAL 250 5 MAHARASHTRA 8.54 6 ORISSA 60.98 7 ANDHRA PRADESH 16.93 8 NORTH EAST 0.91 TOTAL * 247.85

* Source GSI CBMCBM RESOURCESRESOURCES OFOF INDIAINDIA STATEWISE ESTIMATED CBM RESOURCES FOR AWARDED AND IDENTIFIED BLOCKS

Sl. AREA CBM RESOURCES STATE COALFIELD./ BLOCK No. (Sq. Km.) (BCM) Raniganj East Raniganj North 1 West Bengal 1330 144 Raniganj South Birbhum Jharia Bokaro North Karanpura 2 Jharkhand 1857 322.10 North Karanpura (West) South Karanpura Rajmahal Sohagpur (East) Sohagpur (West) 3 Madhya Pradesh Satpura 3059 195.30 Sohagpur (North) Singrauli (West) Sonhat 4 Chattisgarh Tatapani-Ramkola 2195 119.90 Mand-Raigarh Contd…… STATEWISE ESTIMATED CBM RESOURCES FOR AWARDED AND IDENTIFIED BLOCKS Sl. AREA CBM RESOURCES STATE COALFIELD./ BLOCK No. (Sq. Km.) (BCM)

5 Orissa Talchir 500 35.0

6 Maharashtra Wardha 503 19.90

Godavari 7 Andhra Pradesh 926 63.65 Kothagudem (East)

8 Tamil Nadu Manargudi 739 27.7 Barmer – Sanchor - III 9 Gujarat Cambay - I 3010 224.20 Cambay – II

Barmer - Sanchor - I 10 Rajasthan 2065 182.80 Barmer - Sanchor - II

TOTAL 16,184 1334.55 (1.33 TCM) PROGNOSTICATEDPROGNOSTICATED CBMCBM RESOURCESRESOURCES :: 2.62.6 TCMTCM MARKETMARKET && INFRASTRUCTUREINFRASTRUCTURE Ever Expanding Market…

Crude Oil (MMBBLS) Natural Gas (MMSCFD) 3000 16000 2760 Demand Demand 13807 Production Supply 12000 2000 11053

1463 8158 8000 5332 825 1000 720 4000 4979 4979 4273 450 2472 240 248 338 0 0 2001-2002 2002-03 2011-12 2024-25 2001-2002 2006-07 2011-12 2024-25 Year Year Natural Gas Demand / Supply Projections

400 391 Supply * 350 NEC + CBM 313 300 Demand

Æ 250 231 200 156 151 151 150 43 48 100 MMSCMD--- 108 108 50 70 121 0 2001-02 2006-07 2011-12 2024-25 * SUPPLY PROJECTIONS BASED ON PRESENT RESERVES ALMOST 100% INCREASE DUE TO RECENT DISCOVERIES IN PVT./J.V. SECTOR * INSTANT DEMAND FOR NATURAL GAS AVAILABLE IN THE COUNTRY Gondwana Coalfields n 20 a TertiaryTertiary LignitefieldsCoal // Lignite t s Lignite Fields i k a P C h i n a N Delhi e p 15 19 a l z COAL FIELD OF r 18 14 a INDIA 5 4 2 nm 6 a 17 y 7 13 10 3 1 M 7 8 z NATIONAL GAS 9 Kolkata 11 GRID Mumbai 12 Bay z Of z PRODUCT Arabian Bengal PIPELINES IN INDIA RefineriesSea in India Chennai 16 NicobarNicobarNicobarNicobarNicobarNicobarNicobarNicobar 16 MajorPRODUCT Airports in National Gas Grid IslandsIslandsIslandsIslandsIslandsIslandsIslandsIslands PIPELINE EXISTING India AndamanAndamanAndamanAndamanAndamanAndamanAndamanAndaman PROPOSED GEOLOGICALGEOLOGICAL FACTORSFACTORS FORFOR DEVELOPMENTDEVELOPMENT OFOF CBMCBM FAVOURABLEFAVOURABLE GEOLOGICALGEOLOGICAL FACTORSFACTORS FORFOR DEVELOPMENTDEVELOPMENT OFOF CBMCBM

z THICK, LATERALLY CONTINUOUS COALS OF HIGH THERMAL MATURITY

z HIGHER PERMEABILTY OF COAL

z HIGH GAS CONTENT OF COAL SEAM

z BASINWARD FLOW OF GROUND WATER THROUGH COALS OF HIGH RANK AND GAS CONTENT ORTHOGONALLY TOWARD NO- FLOW BOUNDARIES (REGIONAL HINGELINES, FAULT SYSTEMS, FACIES CHANGES, AND / OR DISCHARGE AREAS)

z CONVENTIONAL TRAPPING ALONG THOSE BOUNDARIES TO PROVIDE ADDITIONAL GAS BEYOND THAT GENERATED DURING COLIFICATION.

z SIZEABLE IN PLACE COAL RESERVES GEOLOGICAL CHARACTERISTICS OF INDIAN COALBED METHANE RESERVOIRS

z HIGH RANK COALS STORE THERMOGENIC METHANE (JHARIA, BOKARO, RANIGANJ)

z LIGNITES CONTAIN BIOGENIC METHANE (CAMBAY, BARMER)

z HETEROGENEOUS INDIAN COALS SHOW VARIATIONS IN RESERVOIR PARAMETERS.

z LITHOSTATIC STRESS DECREASES PERMEABILITY BEYOND 700M DEPTH. HOWEVER NETWORK OF FAULT IN GONDWANA RIFT BASINS INCREASES PERMEABILITY LOCALLY.

z GAS CONTENT INCREASES AT DEPTH.

z COAL UNDERSATURATED AT 300M DEPTH, SATURATED BEYOND 600M. COAL RANK, GAS GENERATION AND ADSORPTION

THERMAL GAS GENERATION COAL RANK (ASTM) MATURITY (Ro%) & ADSORPTION BARMER, CAMBAY, LIGNITE BIOGENIC & MANNARGUADI LIGNITE GROUP C 0.4% SUB BITUMINOUS MIXED GAS BASINS A.B.C. RANIGANJ FM. 0.5% HIGH B ADSORPTION OF RANIGANJ & JHARIA I VOLATILE C 0.6% CAPACITY COALFIELDS T HIGH GROUP B U BARAKAR FM. VOLATILE B M 0.8% OF SATPURA, SOHAGPUR, I WARDHA, GODAVARI, N HIGH O VOLATILE A THERMAL SONHAT COALFIELDS GENERATION U 1.1% S BARAKAR FM. MEDIUM OF JHARIA, RANIGANJ, EAST VOLATILE R BOKARO & KARANPURA GROUP A A 1.5% COALFIELDS N LOW K VOLATILE S 2.0% SEMI ANTHRACITE 2.6% ANTHRACITE META ANTHRACITE 0 2000 6000 SCF / T CBMCBM POLICYPOLICY INITIATIVESINITIATIVES ININ INDIAINDIA CBM POLICY INITIATIVE IN INDIA z THE GOVERNMENT OF INDIA, IN ORDER TO UTILISE THE CBM POTENTIAL IN THE COUNTRY FORMULATED A CBM POLICY JULY’97 z MOP&NG BECAME ADMINISTRATIVE MINISTRY AND DGH BECAME IMPLEMENTING AGENCY FOR CBM POLICY z DGH DID COMMENDABLE WORK TO OPERATIONALISE THE CBM POLICY.

….Contd. CBM POLICY INITIATIVE IN INDIA ….Contd. z DGH IDENTIFIED BLOCKS FOR CBM EXPLORATION AFTER INTERACTION WITH THE MINISTRY OF COAL AND OTHER AGENCIES IN THE KNOWN HIGH RANK COALFIELD AREAS z BLOCKS OFFERED THROUGH GLOBAL COMPETITIVE BIDDING BY MOP&NG z FISCAL, CONTRACTUAL AND OPERATING REGIME AND MODEL CONTRACT PUT IN PLACE WITH ONE OF THE BEST TERMS z VERY LIBERAL FISCAL TERMS OFFERED TO ATTRACT INVESTORS COAL BED METHANE - FISCAL TERMS

z No participating interest of the Government z No Signature Bonus z Allotment of blocks through global bidding z Provision for bidding for more than one block z 10% Ad-valorem Royalty payable to state Govt. z Additional Production Linked Payment Biddable

9 Payment on sliding scale for every 0.5 MMSCMD incremental gas production beyond 1.0 MMSCMD z Freedom to sell gas in the domestic market – determined prices z Fiscal stability provision in the Contract

….Contd. COAL BED METHANE - FISCAL TERMS z No Customs Duty on imports required for CBM operations z Arbitration provisions to be governed by the Arbitration and Conciliation Act, 1996, which is based on UNCITRAL provisions. z Nominal Commercial Bonus of US$ 0.3 Million after discovery z New Petroleum Tax Guide to facilitate investors z Corporate Income Tax payable as per Income Tax Act, 1961 z Model Contract to serve as guideline. z 7 year Tax Holiday from the date of Commencement of Commercial Production CURRENTCURRENT ACTIVITIESACTIVITIES ININ CBMCBM EXPLORATIONEXPLORATION ANDAND PRODUCTIONPRODUCTION ININ INDIAINDIA CBM EXPLORATION – ROUND-I & II z A TOTAL OF 16 BLOCKS AWARDED UNDER CBM-I & CBM-II ROUNDS OF BIDDING AND NOMINATION BASIS AS ON DATE z A TOTAL AREA OF 7810 SQ. KM. OPENED UP FOR EXPLORATION AND PRODUCTION OF CBM z THE TOTAL CBM RESOURCE IN THESE 16 BLOCKS IS ESTIMATED TO BE AROUND 820 BILLION CUBIC METRES z THE APPROXIMATE PRODUCTION OF CBM GAS ESTIMATED FROM THESE BLOCKS IS 23 MMSCMD AT PEAK PRODUCTION LEVELS DISCOVERIES & RESERVE ACCRETION

BLOCKS OPERATOR / BLOCK AREA (SQ.KM.) GAS IN-PLACE CODE (TCF) Sohagpur (East) RIL 495 1.69 SP(East)-CBM-2001/I Sohagpur (West) RIL 500 1.96 SP(West)-CBM-2001/I Raniganj (East) EOL 500 1.385 RG (East)-CBM-2001/I Bokaro ONGC 95 1.2 BK-CBM-2001/I

As per the committed work programme and time schedule in the contract & keeping in view the status of work progress in the awarded CBM blocks, the commercial production of CBM in the country is likely to commence by 2007-08. SIGNIFICANT CBM EXPLORATION ACTIVITIES

z During the last three years more than 50 Coreholes, 15 Test Wells and 3 Pilot Wells have been drilled in the awarded blocks. z Air drilling technology employed for the first time in India for production test wells. z Faster drilling and well completion rates of average 7 days / well and 15 days / corehole achieved against an average of 60 days required earlier for similar operations. z Some operators have already completed their Phase-I exploration activities and have entered into Pilot Assessment Phase-II. z To establish the commercial potentiality of the identified fairways in different blocks, additional 50 wells are proposed to be drilled. CBM BLOCKS AWARDED UNDER CBM-I ROUND AND ON NOMINATION BASIS

Total area opened up for Coal / Lignite Fields 2575 Sq. Km. Coal / Lignite Fields exploration & production (8 Blocks) CBM Blocks Awarded of CBM n CBM Blocks Awarded a t i s Block Name State Ref. Awarded k C h i n a a No. P N e Delhi p a l A. Awarded through CBM-I Round RG(East)-CBM-2001/1 West Bengal 1 EOL

3 7 6 r 4 a BK-CBM-2001/1 Jharkhand 2 ONGC-IOC m 1 n a 8 y 2 M NK-CBM-2001/1 Jharkhand 3 ONGC-IOC 5 Kolkata SP(East)-CBM-2001/1 M.P. 4 RIL

Mumbai SP(West)-CBM-2001/1 M.P. 5 RIL

Arabian Bay B. Awarded on Nomination basis Sea of Raniganj North West Bengal 6 ONGC-CIL

Bengal NicobarNicobarNicobarNicobar Chennai Jharia Jharkhand 7 ONGC-CIL IslandsIslandsIslandsIslands C. Awarded through FIPB route

AndamanAndamanAndamanAndaman Raniganj South West Bengal 8 GEECL

Total Resources : 393 BCM, Production Potential : 13.5 MMSCMD CBM BLOCKS AWARDED UNDER CBM-I ROUND & ON NOMINATION BASIS

A. CBM BLOCKS AWARDED UNDER FIRST OFFER OF BIDDING

CBM Date of SL. AREA IN BLOCK STATE RESOURCES AWARDEE signing of NO SQ.KM. TCF (BCM) Contact

1 Bokaro Jharkhand 95.00 1.59 (45) ONGC-IOC 26.7.2002 2 North Jharkhand 340.00 2.19 (62) ONGC-IOC Karanpura

3 Sohapgpur Madhya 495.00 1.74 (49.3) Reliance (East) Pradesh Industries Ltd. (RIL)

4 Sohagpur Madhya 500.00 1.30 (37) Reliance (West) Pradesh Industries Ltd. (RIL)

5 Raniganj W.Bengal 500.00 1.48 (42) Essar Oil Ltd. (East) (EOL)

Contd…… CBM BLOCKS AWARDED UNDER CBM-I ROUND & ON NOMINATION BASIS ….Contd. B. CBM BLOCKS AWARDED ON NOMINATION BASIS

CBM Date of SL. AREA IN BLOCK STATE RESOURCES AWARDEE signing of NO SQ.KM. TCF (BCM) Contact

6 Raniganj W.Bengal 350.00 1.52 (43) ONGC-CIL 6.2.2003 North 7 Jharia Jharkhand 85.00 3.00 (85) ONGC-CIL

C. CBM BLOCKS AWARDED THROUGH FIPB ROUTE & LATER UNDER CBM POLICY

8 Raniganj W.Bengal 210.00 1.00 (28) GEECL 31.5.2001 South

GRAND TOTAL 13.87 (393) TOTAL BLOCKS : 8 Coal / Lignite Fields CBM Blocks Awarded Area : 5235 Sq. Km. CBM BLOCKS Delhi AWARDED 6 7 I N D I A UNDER CBM-II 4 ROUND 8 Kolkata 2 1 3 5 Ref. Block Name State Company / No. Consortium Mumbai 1. SK-CBM-2003/II Jharkhand ONGC 2. NK(West)-CBM-2003/II Jharkhand ONGC Bay 3. SH(North)-CBM-2003/II Chattisgarh & RIL of

Arabian Madhya Pradesh A

Bengal A n

Sea 4. n ST-CBM-2003/II Madhya Pradesh ONGC d

Chennai d

5. a WD-CBM-2003/II Maharashtra ONGC

n n 6. BS(1)-CBM-2003/II Rajasthan RIL

7. N BS(2)-CBM-2003/II Rajasthan RIL N ii c o 8. BS(3)-CBM-2003/IIb Gujarat ONGC-GSPCL a rr Total Resources : 425 BCM, Production Potential : 9.5 MMSCMD DETAILS OF 8 AWARDED BLOCKS UNDER CBM-II ROUND

CBM DATE OF SL. BLOCK NAME STATE AREA RESOURCES AWARDED SIGNING OF NO. (COAL / LIGNITE FIELD) (DISTRICT) (SQ.KM) (BCM) CONTRACT

SK-CBM-2003/II (SOUTH JHARKHAND 1 70 30.50 ONGC KARANPURA) (HAZARIBAGH)

NK(WEST)-CBM-2003/II JHARKHAND (CHATRA, 2 267 43.60 ONGC (NORTH KARANPURA) LATEHAR, RANCHI)

CHATTISGARH & SH(NORTH)-CBM-2003/II 3 MADHYA PRADESH 825 33.90 RIL (SONHAT) (KOREA)

ST-CBM-2003/II MADHYA PRADESH 4 714 29.30 ONGC (SATPURA) (SHAHDOL) 6.2.2004 WD-CBM-2003/II MAHARASHTRA 5 503 19.90 ONGC (WARDHA) (CHANDRAPUR)

BS(1)-CBM-2003/II RAJASTHAN (JALORE, 6 1045 95.10 RIL (BARMER) BARMER)

BS(2)-CBM-2003/II RAJASTHAN (JALORE, 7 1020 87.70 RIL (BARMER) BARMER)

BS(3)-CBM-2003/II GUJARAT 8 790 87.20 ONGC-GSPCL (BARMER) (BANASKANTHA) TOTAL 5234 427.20 PROSPECTSPROSPECTS OFOF CBMCBM ININ THETHE AWARDEDAWARDED BLOCKSBLOCKS JHARIA COALFIELD – A STOREHOUSE OF COALBED METHANE z CBM BLOCK : 1 (AREA – 85 SQ.KM) z COAL SEAMS : 18 Regional Seams z SEAM THICKNESS : 1 – 33 m z DEPTH : 300 – 1200 m

3 z GAS CONTENT : 6 – 16 M /t z PERMEABILITY : 0.03 (Deeper Seam) to 3.0 md (Upper Seam) z CBM RESOURCE : 85 BCM

3 z GAS PRODUCTION : 8000 M /d in Test Well

3 z WATER PRODUCTION : 2 – 5 M /d z R&D ACTIVITY : UNDP Project in another part of this field JHARIA COAL FIELD SHOWING CBM BLOCKS

TO GOMOH TO DELHI

DAMUDA MADHUBAND UNDP PROJECT

MOONIDIH

R. O ODAR MUKUNDA R DAM A K O B SUDAMDIH O I N D E X T CBM BLOCK RANIGANJ BARREN MEASURE BARAKAR TALCHIR TO ADRA METAMORPHICS RANIGANJ COALFIELD THRESHOLD OF CBM DEVELOPMENT

z THREE CBM BLOCKS : EAST RANIGANJ (500 Sq.Km.) (AREA – 1060 SQ.KM) NORTH RANIGANJ (350 Sq.Km.) SOUTH RANIGANJ (210 Sq.Km.) z COAL SEAMS : 10 Regional Seams z SEAM THICKNESS : 4 – 46 m z GAS CONTENT : 2 – 17 M3/t z PERMEABILITY : Continuous Gas emission from coreholes shows good permeability z CBM RESOURCES : 115 BCM z ANTCIPATED GAS PRODUCTION : 2 – 3 MMSCMD GEOLOGICAL MAP OF RANIGANJ COALFIELD SHOWING CBM BLOCKS

+ + + + RANIGANJ NORTH + + + 0 4 8 km + + + + + + + + + + BLOCK + + + + + + + + + Scale + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + TO DHANBAD + + + + + + + + + + + + + + + + + + + + + + + + + RANIGANJ + + SOUTH BLOCK + + + Raniganj + + + + + + + -- + + Alluvium + + + + + + + + + Tertiary + + Du Barakar Fm. rg Basic and Ultrabasic ap ur Intrusives Talchir Fm. Supra Panchet Fm. + + Metamorphics Panchet Fm. Coal Seam RANIGANJ Raniganj Fm. Fault EAST BLOCK TO KOLKATA Ironstone Shale Fm. BOKARO COALFIELD : A SMALL YET AN EXCELLENT CBM PROSPECT

z CBM BLOCK : 1 (AREA – 95 SQ.KM) z COAL SEAMS : 22 Nos. z SEAM THICKNESS : 2 – 36 m z DEPTH : 300 – 1500 m z GAS CONTENT : 6 – 12 m3/t z HYDROGEOLOGY : SUB ARTESIAN AT PLACES z PERMEABILITY : CONTINUOUS GAS EMISSION FROM OLD BOREHOLES SHOWS GOOD PERMEABILITY z CBM RESOURCES : 45.03 BCM z ANTICIPATED PRODUCTION : 2 MMSCMD GEOLOGICAL MAP OF BOKARO COALFIELD

85°25' 85°35' 85°45' 85°55' 86°5' W E S T B O K A R O C O A L F I E L D E A S T B O K A R O C O A L F I E L D + + + + + + + ++ + + + + T + + + + + 23°50' + + + + BK-CBM-2001/1 + + + + + + + + + +++ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + ++ + + + + + T T + + + + + + + + LUGU + + + + + + + + + + + + + + + + + + + + + + HILL + 23°45' + + + + + + + + + + + + + + + + ++ + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + DAMODAR RIVER

Mahadeva Fm. Talchir Fm 23°40' Panchet Fm. ++ Precambrian Raniganj Fm. CBM Block Boundary 0 3 6 km Barren Measures SCALE Barakar Fm PROSPECTS IN CBM BLOCKS NORTH KARANPURA, JHARKHAND

CBM BLOCKS : 2 NOS (AREA - 607 SQ.KM)

COAL SEAMS : 5 REGIONAL SEAMS

SEAM THICKNESS : 20 – 90 M

COAL SEAM DEPTH : 300 - 1200 M

PERMEABILITY : GOOD

GAS CONTENT : 4 – 8 M3/T

CBM RESOURCES : 105.50 BCM GEOLOGICAL MAP OF NORTH KARANPURA COALFIELD

To Simaria

Kerendari Tandwa To Hazaribagh NK-CBM-2001/1 NK (WEST)-CBM-2003/II

To Balumath

INDEX

MAHADEVA FM PANCHET FM RANIGANJ FM Rohne BARREN MEASURES BARAKAR FM South Hindegir R.S TALCHIR FM Karanpura C.F Tori R.S. Patratu R.S 048Km METAMORPHICS To Bokaro BLOCK BOUNDARY Mac-cluskieganj R.S. Scale COAL SEAM SOHAGPUR – SONHAT COALFIELDS A CBM SOURCE IN LOCALLY FORMED HIGH RANK COALS z CBM BLOCKS : 4 (AREA – 2520 SQ.KM) z COAL SEAM : 5 – 6 NOS. z SEAM THICKNESS : 1 – 15 M

3 z GAS CONTENT : 3 – 10 M /T z CBM RESOURCE : 159 BCM z PRODUCTION PROSPECT : 4.8 MMSCMD GOOD AS LARGE COMMAND AREA AVAILABLE FOR CBM EXPLOITATION GEOLOGICAL MAP OF SOHAGPUR COALFIELD, MADHYA PRADESH

TO REWA PR PR

PATASI SP (WEST) - CBM - 2001/1 SP (EAST) - CBM - 2001/1 CHHLAHA SHAHDOL TO KATNI

CHANGERI

TO BILASPUR TO BILASPUR 05 10km Basic Intrusives Barren Measures SCALE Lameta Bed Barakar Formation PR Parsora Formation TalchIr Formation PL Pali Formation Pre Cambrian Granite / Gneiss Raniganj Formation Major Fault PROSPECTS IN CBM BLOCK SOUTH KARANPURA, JHARKHAND

CBM BLOCK : 1 (AREA - 70 SQ.KM)

COAL SEAMS : 42 REGIONAL SEAMS

SEAM THICKNESS : 30 – 120 M

COAL DEPTH : 500 – 1500 M

PERMEABILITY : GOOD, HIGH FRACTURE DENSITY IN COALS

GAS CONTENT : 6 – 10 M3/T

CBM RESOURCE : 30.45 BCM GEOLOGICAL MAP OF SOUTH KARANPURA COALFIELD, JHARKHAND

D A TO HAZARIBAGH MO D R A IVE R R

TO DALTANGANJ

TILAIYA BUNDU TO RAMGARH PATRATU

COAL SEAM DOLERITE DYKE TO RANCHI

TO B RANIGANJ FORMATION ARKA KANA BARREN MEASURE FORMATION BLOCK-SK-CBM-2003/II BARAKAR FORMATION KARHARBARI FORMATION TALCHIR FORMATION 0 6 Km. METAMORPHICS PROSPECTS IN CBM BLOCK WARDHA, MAHARASTRA

CBM BLOCK : 1 (AREA - 503 SQ.KM)

COAL SEAMS : 1 MAIN SEAM (COMPOSITE SEAM)

SEAM THICKNESS : 10.7 - 14.3 M

SEAM DEPTH : 300 - 1200 M

GAS CONTENT : 4 - 6 M3/T

CBM RESOURCE : 19.9 BCM GEOLOGICAL MAP OF EASTERN PART OF WARDHA VALLEY COAL FIELD MAHARASHTRA

ALLUVIUM / SOIL DECCAN TRAP To Nagpur To Nagbhir LAMETA FORMATION KAMTHI FORMATION BARAKAR FORMATION TALCHIR FORMATION CHANDRAPUR UNDIFFERENTIATED PROTEROZOIC WARDHA R. SEDIMENTS BALLARSHAH SULLAVI GROUP

PAKHAL GROUP VINDHYAN UNCLASSIFIED PRECAMBRIAN METAMORPHICS & GNEISSES

T MAHARASHTRA o CBM BLOCK WD-CBM-2003/II

a z i p 010 Km. e F t A.P. h F PROSPECTS IN GODAVARI CBM BLOCK ANDHRA PRADESH

CBM BLOCK : 1 (AREA - 386 SQ.KM)

COAL SEAMS : 10 REGIONAL SEAMS

SEAM THICKNESS : 15 – 20 M

SEAM DEPTH : 450 - 1500 M

PERMEABILITY : GOOD TO MODERATE

GAS CONTENT : 4 – 4.5 M3/T

CBM RESOURCE : 29.65 BCM GEOLOGICAL MAP OF GODAVARI VALLEY COALFIELD, ANDHRA PRADESH

P R A N H IT A R . LEGEND

DECCAN TRAP G MANCHERIAL ODA SIRONCHA GANGAPUR FM VAR I R. KOTA FM

MALERI FM

KAMTHI FM MANGAPET RANIGANJ FM GV (NORTH)-CBM-2003/II MANUGURU BARREN MEASURE GO DA BARAKAR FM VA KOTHAGUDEM RI R. TALCHIR FM

PRE-CAMBRIAN PROSPECTS IN SATPURA CBM BLOCK MADHYA PRADESH CBM BLOCK : 1 (AREA - 714 SQ.KM)

COAL SEAMS : 3 - 5 REGIONAL SEAMS

SEAM THICKNESS : 3 – 11.5 M

SEAM DEPTH : 300 - 1200 M

PERMEABILITY : GOOD

GAS CONTENT : 6 – 8 M3/T

CBM RESOURCE : 29.3 BCM SATPURA COALFIELD, MADHYA PRADESH

GEOLOGICAL MAP

To Bhopal To Jabalpur Sobhapur Hoshangabad Piparia Sohagpur

Itarsi a aw nd ha K To Deccan Trap Kesla Jabalpur Fm Pachmarhi Bagra-Denwa Fm Bardha Pench Valley Panchmarhi Fm Bijori Fm Bijori Motur Fm Shahpur Barakar Fm Damua Talchir Fm Bhata hera Precambrians Pathak Tandsi 0 15 km Block Boundary Chindwara To Betul ST-CBM-2003/II PROSPECTS OF CBM IN BARMER BASIN

Western Block Eastern Block Southern Block BS(1)-CBM-2003/II BS(2)-CBM-2003/II BS(3)-CBM-2003/II Rajasthan Rajasthan Gujarat Area 1045 Sq.km 1020 Sq.km 790 Sq.km Thumbli Formation Thumbli Formation Tharad Formation Lignite bearing sequence (M. Eocene) (M. Eocene) (M. Eocene) No. of Lignite seam Composite Seam often split Net lignite thickness 20 – 76 m 20 – 40m 25 – 60 m Rank Lignito bituminous Vro–0.35% Depth of Lignite 600 – 1500 m 700 – 1500 m 600 – 1500 m Permeability Very Good Very Good Very Good

Gas Origin Mixed Origin : Early Biogenic & Early Thermogenic Gas Content 4 – 6 M3 / t Gas in place resource 95 BCM 87.7 BCM 87.2 BCM GEOLOGICAL & TECTONIC MAP OF BARMER & CAMBAY BASIN

SHIV JODHPUR

R BARMER M E

S I BS(2)-CBM-2003/II N

0 100 BS(1)-CBM-2003/II RAJSTHAN SCALE BS(3)-CBM-2003/II GUJARAT Miocene - Recent Paleocene to Recent CAMBAY Paleozoic & Mesozoic

Precambrian Sediments B AS IN Crystalline Basement

AHMEDABAD Volcanics EXPECTEDEXPECTED PRODUCTIONPRODUCTION POTENTIALPOTENTIAL OFOF CBMCBM ININ INDIAINDIA CBM RESOURCES & EXPECTED PRODUCTION POTENTIAL A. BLOCKS AWARDED UNDER CBM-I ROUND & ON NOMINATION BASIS

CBM Expected production SL. AREA BLOCK STATE RESOURCES of CBM / day NO (SQ.KM) (BCM) (MMSCMD)

1 BOKARO JHARKHAND 95.00 45 1.9

2 NORTH KARANPURA JHARKHAND 340.00 62 2.0

3 SOHAPGPUR EAST MADHYA PRADESH 495.00 49.3 1.8

4 SOHAGPUR WEST MADHYA PRADESH 500.00 37 1.8

5 RANIGANJ EAST W.BENGAL 500.00 42 1.5

6 RANIGANJ NORTH W.BENGAL 350.00 43 1.0

7 JHARIA JHARKHAND 85.00 85 2.0

8 RANIGANJ SOUTH W.BENGAL 210.00 28 1.5

TOTAL 2575 393 13.5 Contd…… CBM RESOURCES & EXPECTED PRODUCTION POTENTIAL B. BLOCKS AWARDED UNDER CBM-II ROUND CBM Expected production SL. AREA BLOCK STATE RESOURCES of CBM / day NO (SQ.KM) (BCM) (MMSCMD)

1 SOUTH KARANPURA JHARKHAND 70 30.50 1.0

2 NORTH KARANPURA JHARKHAND 267 43.60 1.3

CHATTISGARH & 3 SONHAT 825 33.90 1.2 MADHYA PRADESH

4 SATPURA MADHYA PRADESH 714 29.30 1.0

5 WARDHA MAHARASHTRA 503 19.90 0.7

6 BARMER RAJASTHAN 1045 95.10 1.5

7 BARMER RAJASTHAN 1020 87.70 1.5

8 BARMER GUJARAT 790 87.20 1.3

TOTAL 5234 427.20 9.5 GRAND TOTAL (A+B) 7809 820 23 STATEWISE POSSIBLE CBM RESERVES & ANTICIPATED PRODUCTION OF CBM / DAY FROM AWARDED & IDENTIFIED BLOCKS

Sl. State Prognosticated Recoverable Reserves at 20-25% Production in MMm3 per day No. Resource of Prognosticated Resource for 25 years assessed on 20- (BCM) (BCM) 25% recovery (MMSCMD)

1 WEST BENGAL 144 28.8 – 36.00 3.15 – 3.94

2 JHARKHAND 322.10 64.42 – 80.52 7.0 – 8.8

3 MADHYA PRADESH 195.30 39 – 48.8 4.27 – 5.35

4 GUJARAT 224.20 44.8 – 56.00 4.9 – 6.13

5 RAJASTHAN 182.80 36.56 – 45.7 4.0 – 5.0

6 MAHARASHTRA 19.90 3.98 – 4.97 0.44 – 0.54

7 CHATTISGARH 119.90 23.98 – 29.97 2.63 – 3.28

8 ORISSA 35.00 7.0 – 8.75 0.77 – 0.96

9 ANDHRA PRADESH 63.65 12.73 – 15.91 1.40 – 1.74

10 TAMILNADU 27.70 5.54 – 6.92 0.61 – 0.76 TOTAL 1334.55 266.91 – 333.64 29.25 – 36.56

* If prognosticated resources of CBM is taken as 2.6 TCM, the projected production potential could be 50 MMm3 / day MAJORMAJOR FOURTHCOMINGFOURTHCOMING CBMCBM EXPLORATIONEXPLORATION OPPORTUNITIESOPPORTUNITIES CBMCBM ROUNDROUND IIIIII BLOCK ON OFFER UNDER CBM-III ROUND

Ref. Coal-Field Block Name State No.

1 Raj Mahal RM-CBM-2005/III Jharkhand

2 Birbhum BB-CBM-2005/III West Bengal

3 Tatapani- TR-CBM-2005/III Chattisgarh Ramkola 4 Mand-Raigarh MR-CBM-2005/III Chattisgarh

5 Sohagpur SP(North)-CBM- Madhya 2005/III Pradesh 6 Singrauli SR-CBM-2005/III Madhya Pradesh 7 Kothagudem KG(East)-CBM- Andhra 2005/III Pradesh PROSPECTS & OPPORTUNITIES

9 To increase the pace of exploration and development of CBM the Government of India under CBM-III round of international bidding has identified 7 additional blocks in different coalfields, located in the States of Madhya Pradesh, Chattisgarh, Jharkhand, West Bengal, Andhra Pradesh & Rajasthan and hold sizable resources of CBM showing good prospectivity.

9 The CBM terms offered by Government are definitely the very best in the world:

• Seven years tax holiday from the date of commencement of production.

• Fiscal stability provision in the contract.

• No participating interest of the Government.

• No signature bonus.

• No custom duty on imports required for CBM operations.

• Freedom to sell gas in the domestic market at market determined rate.

9 During the last 3 years more than 75 exploratory / pilot wells have been drilled in the 16 CBM blocks awarded during the last two rounds of international bidding.

9 Significant finds reported in Jharia, Raniganj, Bokaro & Sohagpur Coalfields in the Eastern and Central part of India

9 Test production of CBM in these blocks have yielded encouraging quantities of gas and commercial exploitation of Coalbed Methane (CBM) in India is no longer a myth but a reality. GEOLOGICAL MAP OF RAJMAHAL COAL BELT

870 15’ 870 30’ 870 45’

+ ++ R + E IV BARHARWA R I N M G + O A G N G + + E 240 + S 240 + + 45’ + 45’ + + + LITIPARA

+ + RM-CBM-2005/III + +

++ + + + PAKUR + + + ++ + + 240 ++ 240 + BANSOLI RIVER 30’ + 30’ + + + + ++ + TO JANGIPUR + + + + + + ++ + ++ + + + ++ CBM Block Boundary + 240 DUMKA + 240 15’ + ++ 15’ + BRAHMNI RIVER LEGEND ++ + + Fault + + + Alluvium + + + Rajmahal Trap ++ + + + Dubrajpur Fm. + + + Barakar Fm. + + 0 5 Km. ++ + + + Scale Talchir Fm. + + + TO RAMPUR HAAT ++ Pre-Cambrian + + + 870 15’ 870 30’ 870 45’ GEOLOGICAL SETUP RAJMAHAL COALFIELD: z The coal measures of Rajmahal coalfield are exposed in the marginal part of a large master basin which extends from Purnea trough in the north Bihar across the Rajmahal hills to the Bengal basin in the South East. z The Barakar formation (L. Permian) of Gondwana sequence is the major repository coal in the basin. z The guiding factors for delineation of a CBM block in this coalfield include:

(i) occurrence of thick coal seams (about 40-60m) below a variable cover of 300-600m of younger strata with an average gas content of 5-6 m3/t,

(ii) exposure of coal seams to varying thermal regime below the cover of Rajmahal volcanic suite and the low stress regime in relaxed structural setting.

(iii) One CBM block have been offered in this block GEOLOGICAL MAP OF BIRBHUM COALFIELD WESTBENGAL

870 30’ 870 35’ 870 40’ 870 45’

0 0 24 BRAHMNI RIVER 24 15’ 15’ LEGEND

Fault Tertiary Rajmahal Trap Dubrajpur Fm. Barakar Fm. Talchir Fm. BANRANPUR ++ Pre-Cambrian JHARKHAND TO RAMPUR HAAT

240 240 10’ 10’

C HIL A N ALA + KAPASDANGA + + + + WESTBENGAL + DHOLKATTA + + + + RAMPUR

++ T 0 ++ A 0 24 A 24 H R 05’ HARSINGHA MALLARPUR U 05’ P + M + A R GANPUR O + + T + + ++ MATHRUAPAHAR + +

BHO LA NALA

R A E Y CBM Block Boundary V I I H R T

A N K I R A A S

W 0 D O 0 24 T 24 00’ 870 30’ 870 35’ 870 40’ 870 45’ 00’ GEOLOGICAL SECTION OF GONDWANA COAL SEAMS, BIRBHUM COAL FIELD

S 40 W N 40 E

DNJ-9 DNJ-11

+ +

+ + +

+ + + + + + + Zone-4 + + + + + + + + + + + Zone-3 + + + + + LEGEND 100 m + + + + + + Coal Seam + + + Fault + + + + Zone-2 Rajmahal Trap + Dubrajpur Fm. + + + + 0 100 m Barakar Fm. ++ + + + Zone-1 Talchir Fm. + + + ++ Metamorphics + +++ GEOLOGICAL SETUP

BIRBHUM COALFIELD: It is the south westerly extension of Rajmahal coal belt & the CBM potentiality of the coalfield is characterised by:

a) The concealed nature of the basin

b) development of very thick / super thick coal seams containing section of good quality coal and

c) Evidence of pervasive heat flow from the 200 m thick volcanic suite to the underlying coal measures

d) The desorption & adsorption isotherm data generated from the northern part of the field show that the coal seams store 5-6 m3/t of gas

e) One CBM block is proposed to be offered in this coalfield. GEOLOGICAL MAP OF SOHAGPUR COALFIELD

810 15’ 810 20’ 810 25’ 810 30’ 810 35’ 810 40’ 810 45’

230 230 30’ 30’

SP(NORTH)-CBM-2005/III TIPORI

SON RIVER 230 230 25’ 25’

LEGEND Fault

T Igneous Intrusive

O PATASI

CBM Block Boundary

A Parsora Fm. H

DO Pali Fm. L 0 0 23 Raniganj Fm. 23 20’ 20’ 810 15’ 810 20’ 810 25’ 810 30’ 810 35’ 810 40’ 810 45’ GEOLOGICAL SETUP

SOHAGPUR COALFIELD:

1) Exploratory drilling activities in the two CBM blocks awarded under CBM-I round of bidding located in the central part of this coalfielda block in the north-northwestern part of this coalfield.

2) The northern part of Sohagpur coalfield has a complex history of dolerite intrusion, which may influence the generation of gas.

3) The exploration in Nigwani-Bakeli area within the proposed block revealed the occurrence of Barakar coal measures below 300m cover of Barren Measure and Raniganj formation.

4) The cumulative coal thickness in the block varies from 6-12m. GEOLOGICAL MAP OF SINGRAULI COALFIELD

810 50’ 810 55’ 820 00’ 820 05’ 820 10’ 820 15’ 820 20’ 820 25’ 820 30’ 820 35’ 820 40’ 820 45’ + + + + + + + + + + + + PIPTI + + + + + + + + + + + + + + + + + + + DEOSAR + + + + SINGRAULI R.S. + + + + + + 0 + 0 24 + + 24 10’ 10’ + + + NIDPUR v v + v SR-CBM-2005/III 240 TO SARAIA + 240 05’ v v + 05’ v + + + + +

v BUNJARI + + 240 VANPURA 240 00’ + 00’ CBM Block Boundary + + + LEGEND + 230 Fault + 230 55’ + 55’ vv Basic Igneous Rock + + Pali / Parsora FM. v v v + v + Raniganj Fm. G v R v v + + O v 0 v 0 23 I 23 Barren Measures V P v 50’ E A v v 50’ Barakar Fm. R D v v v v Talchir Fm. v v ++ Metamorphics 0 6 Km. Coal Seam Scale 230 230 45’ 45’ 810 50’ 810 55’ 820 00’ 820 05’ 820 10’ 820 15’ 820 20’ 820 25’ 820 30’ 820 35’ 820 40’ 820 45’ GEOLOGICAL SETUP SINGRAULI COALFIELD:

1) Singrauli coalfield is a major repository of coal in the heartland of the country and is well known for prolific coal development where extensive mining operation is in progress.

2) The Singrauli main basin, where a CBM block has been carved out, is an integral part of the master South Rewa basin containing Sohagpur-Johilla coalfields

3) It has large unrecognized Coalbed Methane potential in moderately thick Barakar seams with a gas content of 5 m3/t

4) 300-500m thick cover over the coal measures, (iii)the rank of coal reaching the threshold of early thermogenic methane generation and

5) localized supply of heat from igneous intrusions, All these in combination are likely to contribute to CBM gas generation and storage in seams. GEOLOGICAL MAP OF TATAPANI-RAMKOLA COALFIELD

830 05’ 830 10’ 830 15’ 830 20’ 830 25’ 830 30’ + + + + + ++ + + + + + + + + + + 0 +++ + + + 0 23 + + + 23 + + NAWADIH+ + 50’ + + + 50’ + + + + + KANWARI ER IV R IS IR + + + DHAMNI + + 230 230 45’ + 45’ MOHAN RIVER TR-CBM-2005/III + + + + + RAMKOLA + + TATAPANI+ + + + ++ +++ + 230 DUBA + 230 + + + + + 40’ + + + + + 40’ + ++ + + + ++ ++ + ++ + RAMPUR + + + ++ LEGEND + + + Fault 230 CBM Block Boundary 230 + + + Deccan Trap 35’ Supra Panchet 35’ ++ + Panchet Fm. + 0 6 Km. + Raniganj Fm. ++ Barren Measures + + + Scale ++ Barakar Fm. + + + + Talchir Fm. ++ Pre-Cambrian

830 05’ 830 10’ 830 15’ 830 20’ 830 25’ 830 30’ GEOLOGICAL SETUP TATAPANI-RAMKOLA z Tatapani-Ramkola Coalfield occurs in the structure junction between the Damodar valley and the Son valley Gondwana basin belts. The basin depicts structural and stratigraphic similarity with that of adjacent Gondwana basin of the Damodar valley whereas the pattern of Coal Formation and sandstone dominated cycles of Barakar Coal measures are more characteristic of the Son valley belt. Because of the close similarity of its basinal history with that of the Damodar valley belt which is a major store house of CBM, it is logical to look for CBM potentiality in the virgin Tatapani-Ramkola Coalfield. z Exploration in Barkagaon revealed the occurrence of twelve regional Barakar Coal seams at a depth of 300-750m and adsorption isotherms of coal show a sorption capacity of 6-8 m3/t of gas in the block. One CBM block is proposed to be offered in this coalfield. 830 00’ 830 15’ 830 30’ +

+ + +

+ + 220 + lunga 220 Le 30’ + + + To 30’ DHARAMJAYGARH + + + + + + + + +

+ + + + + + + + + + GEOLOGICAL MAP OF + + + + + + + + MAND-RAIGARH 220 220 15’ 15’

M A N D R IV COALFIELD E + R

+ R E IV + R T CHHAL E + K + R U K + TAMNAR + + + + KELO RIVER + + + + + + LEGEND + + + + 0 0 22 Fault T + + 22

00’ + 00’ Kamthi Fm. K + h + a + Raniganj Fm. r + s

i + Barren Measures a + + + Barakar Fm. + CBM Block Boundary + Karharbari Fm. T

Talchir Fm. R

i ++ Metamorphics 0 5 Km . g

r Coal Seam Scale h

830 00’ 830 15’ 830 30’ GEOLOGICAL SETUP MAND-RAIGARH COALFIELD: z The Mand-Raigarh Coalfield occupies the central part of the upper Mahanadi valley Gondwana belt and extends over a large stretch lying between Ib valley in the east and Korba and Hasdo-Arand Coalfields in the west and north west. The Coalfield provides ample opportunity for exploring CBM in the deeper axial region of the basin. In the central part of the Coalfield where Barakar Coal measures lie at greater depth below the younger sediments a CBM block has been carved out. z The cumulative Coal thickness in the CBM block varies from 30 to 35m with the increase of depth of burial the Coal seams are likely to store substantial amount of methane. (4.5-5.5 m3/t of gas) 790 30’ 800 00’ 800 30’ 810 00’ + P + ra n LEGEND h + i CBM Block Boundary ta R + . Fault + Deccan Trap + Gangapur Fm. + Kota Fm. + Maleri Fm + 190 190 Kamthi Fm. 00’ 00’ (Including Raniganj Fm.) Barren Measure RAMAGUNDAM SIRONCHA Barakar Fm. Talchir Fm. Sullavai Group 180 180 Pakhal Group GEOLOGICAL MAP OF 30’ 30’ T O ++ Metamorphics K A R IM GODAVARI VALLEY N A G A + R + 0 30 Km. + Scale 0 0 18 + 18 D 00’ BA 00’ A + ER D HY + O T + + + + + ++ G od + ava + ri R KOTHAGUDAM + . + 0 + 0 17 + + 17 + + 30’ + 30’ ++ + ++ + + + + + + + + +++ + + + +

790 30’ 800 00’ 800 30’ 810 00’ GEOLOGICAL SETUP

SOUTHERN GODAVARI VALLEY COALFIELD:

¾ The Godavari valley Gondwana basin is a mosaic of main sub- basin in the north, Kothagudem sub-basin in the centre and chintalpudi sub-basin in the south. The Barakar Formation of Kothagudem sub-basin where a large part of the CBM block is located contains two Coal seams with cumulative thickness of about 30-40m. The coal of the Godavari CBM block belong to high volatile, Bituminious rank and hold on an area average 4- 5m3/t of gas at depth. One CBM block is proposed to offer in this coalfield. INFORMATION AVAILABILITY z Promotional “Road Shows” to be organized in January / February 2006 at USA, Canada, Australia, Russia, UK and India.

z All the road shows to be presided over by the Hon’ble Minister of Petroleum & Natural Gas, besides the senior officials of the Ministry of Petroleum & Natural Gas, Ministry of Coal and Directorate General of Hydrocarbons, Government of India.

z A brochure giving details on the blocks on offer, the Geographical Location on a map of India, the Terms & Conditions, Bid Format, a copy of the Modal CBM Contract and Price List will be made available free of cost.

z The Hard Copies & Digital Copies (on work stations) of the Basin Information Dockets and Data Packages will be made available for inspection at data viewing centers in India and abroad. DEVELOPMENTDEVELOPMENT OFOF CMMCMM // AMMAMM DEVELOPMENT OF CMM / AMM

z AN IMPORTANT AREA OF CBM DEVELOPMENT IN INDIA IS THE RECOVERY OF COAL MINE METHANE (CMM) FROM OPERATIONAL MINES, DELINEATED MINING BLOCKS AND ABANDONED MINE METHANE (AMM) FROM DEPILLARED AND ABANDONED MINES WHICH CAN BE EASY SOURCE OF GAS STORAGE AND RECOVERY. z THE MAJORITY OF CBM RELATED ACTIVITIES HAVE SO FAR BEEN TARGETED TO VIRGIN DEEP-SEATED HIGH RANK COALS WHERE NO MINING ACTIVITIES ARE CONTEMPLATED IN THE DISTANT FUTURE. A GREAT POTENTIAL EXISTS IN INDIA FOR EXPLOITATION OF CMM/AMM. CMM/AMM RESERVOIRS CONSIST OF GROUP OF COAL SEAMS THAT HAVE BEEN DE-STRESSED AND HAVE THEREFORE ENHANCED PERMEABILITY. z ACCORDING TO PRELIMINARY ESTIMATES, A TOTAL OF 27000 SQ. KMS WITH 155 BILLION TONNES OF COAL RESOURCES ARE AVAILABLE FOR EXTRACTION OF CMM/AMM. CONCLUDINGCONCLUDING REMARKSREMARKS WHY INDIA? z India is set to emerge as one of the leading economies of the world in the next 2 decades.

z The country’s GDP is expected to increase three fold by the year 2020

z Primary energy requirement would grow to be close to double the current level in order to fuel the needs of the growing economy.

z Excellent Geographical location WHY INDIA?

z Large talent pool of Earth Scientists/Engineers emerging from Indian Universities z Strong IT and Infrastructure virtually providing Global Access z Strong growth Potential for E&P services. CONCLUDINGCONCLUDING REMARKSREMARKS

z Commercial exploitation of Coal Bed Methane (CBM) in India is no longer a myth but a reality z The CBM gas flared in the test wells in Raniganj, Jharia and Sohagpur Coalfields in the eastern and central part of India bear ample testimony to the stories of success in the formative stage of CBM operation. z India endowed with large resources base of coal and lignite contain sizable quantities of CBM gas. Initial test production in CBM fields of India shows encouraging results. z India has adopted a time bound aggressive strategy for exploration and development of CBM. z CBM an unconventional alternative source of natural gas has good future prospects in India.