India auctions three coal bed methane block

Pallavi Govil, the Directorate General of Hydrocarbons' upstream regulator, announced Tuesday that India had launched an auction of three blocks of coal bed methane and 55 small discovered areas for exploration and production.

Two coal bed methane blocks are located in West Bengal, and one is in Gujarat.

Govil added that India has also signed contracts for oil and natural gas blocks offered in a licensing round held earlier this year. The third-largest oil consumer in the world is looking to increase its domestic output.

Over 80% of the country's oil requirements of over 5 million barrels a day are imported.

Oil India and Oil and Natural Gas Corp, India's largest explorers, signed contracts to explore 11 blocks.

ONGC has also teamed up for three blocks with Oil India and signed a contract with BP for exploration.

Vedanta and Hindustan Oil Exploration Company signed contracts for seven blocks. Reporting by Nidhh Verma, New Delhi. Editing by Shinjini Ganuli

(source: Reuters)