India’s largest public sector oil company by sales, Indian Oil Corp Ltd (IOC), and Gujarat-based Deep Industries Ltd have signed a memorandum of understanding (MoU) to jointly develop two coal bed methane (CBM) blocks and three marginal gas fields, and then market the natural gas.
Coal bed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in the US, Canada and other countries.
Deep Industries, headquartered in Ahmedabad with primary focus in the oil and gas sector, informed the Bombay Stock Exchange (BSE) Monday about its MoU with IOC.
Chairman of Deep Industries, Paras Savla, told IANS over phone from Ahmedabad that preliminary discussions have been initiated on the quantum of investment and the time frame for the development of the two CBM blocks.
‘At this stage, I am not in a position to provide approximate investment figures, the project timeframe and the modalities of the future strategy,’ Savla said.
He said his company was also examining aspects of gas marketing and exploration in these two target blocks that have been allotted to them in Madhya Pradesh and Andhra Pradesh.