EOL to expand its CBM production to 1.8 mscmd by 2017

Essar Oil Limited (EOL) is planning to increase coal-bed methane (CBM) production from the RG (East)-CBM-2001/1 project to at least 1.8 million standard cubic metres per day (mscmd) by March 2017 from the existing 0.85 mmscmd, and scale it up further to 2.5 mmscmd by March 2018. EOL will increase its number of wells from about 300 to 363 by March 2017. So far, EOL has invested Rs 3.6 billion in developing Phases I and II of the project. Phase I entailed drilling 12 core holes and test wells along with a 120 line-km high resolution seismic survey. Phase II entailed the drilling of wells along with the construction of a gas gathering station and a 48 km long pipeline from Raniganj to Durgapur. Phase I of the project was completed in May 2009 and gas production started in January 2011, while Phase II was completed in March 2012.