Invenire Energy to invest $500 mn in Andhra CBM block

Oil and gas explorer Invenire Energy will invest $500 million (about Rs 41.37 billion) over the next 10 years to produce gas from coal beds (coal bed methane or CBM) in a block in Madhya Pradesh, chairman Manish Maheshwari said.

Invenire Petrodyne Ltd (IPL), a subsidiary of the company, previously won a CBM block, SP-ONHP(CBM)-2021/1, at auction. Saddled between the Chhindwara and Betul districts of Madhya Pradesh, the block is spread over 1,771 square kilometers.

The revenue-sharing contract for the bloc, estimated to hold 2 trillion cubic feet of resources, was signed in September. Invenire received a production license this month.

“We plan to drill 350 wells in the first phase with the goal of having the first gas flowing in 2024,” said Maheshwari.

The block is estimated to have a plateau of 3 million standard cubic meters of gas per day, which could be used to light power plants, produce fertilizer or be converted to CNG to power cars.

The government is aiming to increase domestic natural gas production to help increase its share of India's primary energy basket from 6.7% to 15% by 2030.

“The total investment in CBM is likely to be in the order of $500 million over 10 years,” said Maheshwari. Plateau production is likely in fiscal year 2025-26.