The consortia had bid for seven out of a maximum of ten blocks offered in the bid round which closed on June 30, 2006. A formidable bidding group was formed between the Company, Arrow Energy (India) Pty Ltd (Subsidiary of Arrow Energy NL of Australia) as operator and technology partner, along with EIG Energy Infrastructure Group A B of Sweden. The Tata Power Company Ltd was also a part of the consortium as fourth partner in three out of the seven blocks bid.
The consortia won the three blocks amidst stiff competition from various major domestic and international players. Out of the three blocks, one block is in Rajmahal Coal field, Jharkhand and the other two blocks are in Mand Raigarh and Tata Pani Ramkola Coal fields, Chattishgarh.
The consortium structure in the three awarded blocks are as follows:
Arrow (operator) - 35%
Arrow (operator) - 35%
Arrow (operator) - 40%
The estimated expenditure for the first phase of exploration of the three blocks awarded is in the tune of US$ 16 million (Indian Rupees 72 crores) out of which the Company's share would be in the tune of 6 million (Indian Rupees 27 crores). Exploration activities is expected to start in early 2007.
The total expected capital expenditures for entire project (100%) with project duration assumption of 20 years (5yrs Exploration + 15 yrs Production) is in the tune of US$ 500 to 600 million (Indian Rupees 2250 to 2700 crores) out of which the Company's share is in the tune of US$ 200 to 250 million (Indian Rupees 900 to 1125 crores).
Earlier (April 12, 2006) an MoU was executed between the Company, Arrow Energy NL, the leading CBM player in Australia holding substantial CBM acreages in Australia and EIG Energy Infrastructure Group A B, Sweden for joint cooperation in the field of CBM in India, Australia and third countries of mutual interest.
The consortium is also committed to technology transfer in the field of CBM to India. As an initial arrangement the Company plans to depute its technical Manpower to Arrow in Australia to gain technical expertise through work association in Australian CBM.
The Company and EIG are in the process of evaluating CBM Assets of Arrow in Australia for possible investment.
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