Friday, 7 July 2017

GEEC's CBM foray: Profitable so far

Even as ONGC RIL tenders contracts struggles with its Bokaro CBM block on account of high overheads, there are others who are making money. One example is Great Eastern Energy Corporation Ltd (GEEC) in the Raniganj block.
Operations are small scale -- total revenues are at around $ 30 million -- but the gas price elicited is good enough to generate cash.
The company claims to have an OIGP of 2.62 TCF, 3P reserves of  595 BCF.
There are a total of 114 gas producing wells under operations as of now.


Saddled with litigation: While posting a positive cash flow, GEECL seems to have run into trouble, both with the DGH, the PNGRB as well as its contractors. A primary contractor of the company has taken it to court for unpaid dues, and there are now a bitter series of claims and counter claims. The PNGRB has slapped a penalty for an unauthorised gas pipeline.
The DGH too has claimed that dues have not been paid.
The allocation for another CBM block is currently under contest.
Most of these these issues are currently under litigation or arbitration.

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