New Delhi, Jan.14, The Oil and Natural Gas Corporation (ONGC) has signed a Memorandum of Understanding (MoU) with Australia's Arrow Energy for corporation in Coalbed Methane Sector.

The MoU was signed by D K Pande, Director (Exploration), ONGC and Nicholas Davies, CEO and MD, Arrow Energy Ltd. today.

The main areas of cooperation identified under the MoU are joint participation in blocks in India and abroad for exploration, field development and production of CBM; and sharing of knowledge, experience and transfer of technology in CBM Sector.

CBM found in coal seams is fast emerging as an important source of energy world over. In India, CBM resources are estimated at about 2600-3300 BCM. Government of India has awarded blocks for exploration, development and production of CBM to national and international companies under three Bidding Rounds. ONGC, the pioneer of CBM exploration in India, has been carrying out CBM activities in the states of Jharkhand, West Bengal, Madhya Pradesh and Gujarat.

Arrow Energy Ltd Group is a leading Australian integrated energy company focused on the development of CBM. Arrow Energy is an emerging global leader in coalbed methane (CBM) development with an expanding business presence throughout Eastern Australia, China, India, Vietnam and Indonesia. Arrow has acquired a reputation for fast track development of CBM Projects.

The company is listed on Australian Stock Exchange and has a Market cap of about Australian dollars two billion.

Speaking on the occasion, ONGC CMD R S Sharma said there is tremendous potential in CBM business which can be harnessed jointly.(ANI)