GEECL plans Rs 15k investment in shale gas at Raniganj block
OIL & GAS

GEECL plans Rs 15k investment in shale gas at Raniganj block

CEO and Managing Director of Great Eastern Energy Corporation Limited (GEECL), Prashant Modi, told the media that it plans to invest nearly Rs 15,000 crore in exploring shale gas at its Raniganj South block in West Bengal.

GEECL signed the first confidence-building measures (CBM) contract in India for the Raniganj South block in 2001 and the first to commercialise CBM in 2007.

He said that the company has a huge potential for shale resources of up to 6.63 trillion cubic feet (TCF) in the block. The company is waiting to amend the petroleum mining lease for shale exploration from the West Bengal government. It also plans to drill some shale core wells to assess the geological and other technical factors.

Modi said that GEECL would drill some pilot production wells, and the total investment envisaged in our shale programme is around Rs 15,000 crore.

He added that the company is in talks with the government to levy a windfall tax on higher earnings resulting for oil and gas players because of increased global energy prices.

He said that oil and gas prices depend on various factors, including supply and demand, geographical, and geopolitical issues. The prices can rise and fall with other commodities and goods.

Currently, the prices of oil prices are hovering at more than $110 per barrel.

Modi said that the windfall tax would discourage domestic investments in this sector, which will increase imports, which are already at 85% for oil and 50% for gas. It will penalise local producers and incentivise international producers.

He added that natural gas under Goods and Service Tax (GST) would go further in increasing investments in the sector and reduce hydrocarbon imports, achieving a 15% share of gas in India's total energy mix.

Eco-friendly natural gas makes up 6.7% of all primary energy consumption in India.

Image Source

Also read: Cairn India's shale programme to reduce 10% oil & gas imports

CEO and Managing Director of Great Eastern Energy Corporation Limited (GEECL), Prashant Modi, told the media that it plans to invest nearly Rs 15,000 crore in exploring shale gas at its Raniganj South block in West Bengal. GEECL signed the first confidence-building measures (CBM) contract in India for the Raniganj South block in 2001 and the first to commercialise CBM in 2007. He said that the company has a huge potential for shale resources of up to 6.63 trillion cubic feet (TCF) in the block. The company is waiting to amend the petroleum mining lease for shale exploration from the West Bengal government. It also plans to drill some shale core wells to assess the geological and other technical factors. Modi said that GEECL would drill some pilot production wells, and the total investment envisaged in our shale programme is around Rs 15,000 crore. He added that the company is in talks with the government to levy a windfall tax on higher earnings resulting for oil and gas players because of increased global energy prices. He said that oil and gas prices depend on various factors, including supply and demand, geographical, and geopolitical issues. The prices can rise and fall with other commodities and goods. Currently, the prices of oil prices are hovering at more than $110 per barrel. Modi said that the windfall tax would discourage domestic investments in this sector, which will increase imports, which are already at 85% for oil and 50% for gas. It will penalise local producers and incentivise international producers. He added that natural gas under Goods and Service Tax (GST) would go further in increasing investments in the sector and reduce hydrocarbon imports, achieving a 15% share of gas in India's total energy mix. Eco-friendly natural gas makes up 6.7% of all primary energy consumption in India. Image Source Also read: Cairn India's shale programme to reduce 10% oil & gas imports

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