New Delhi, June 5: State-owned ONGC Ltd plans to earn over Rs 120 crore by selling stakes in four coal bed methane (CBM) blocks in Jharkhand and Bengal to private players. The technical expertise of the partners is expected to speed up production.

The blocks are located at Jharia, Bokaro, and North Karanpura in Jharkhand and Raniganj in Bengal.

Brisbane-based Dart Energy will pick up 25 per cent stakes each in the Jharia, North Karanpura and Bokaro blocks, and a 10 per cent stake in Raniganj.

London-listed Great Eastern Energy Corp Ltd will be the lead partner in Raniganj with a 25 per cent interest.

Prabha Energy, CCLE and MMS are the other entities that would acquire 10 per cent stakes in North Karanpura, Jharia and Bokaro, where Dart will be the lead partner.

So far, ONGC has spent over Rs 510 crore in the four blocks, which the private parties may have to share in proportion to their stakes.

Sources said around two-thirds of the total sum would be paid upfront after the bids of the private parties were validated by the government; the rest would come from the proceeds of gas sales.

Though ONGC will continue to hold a majority stake in all the blocks, the private partners will jointly be responsible for managing operations.

“The firm is offloading equity as it is keen to partner with experienced firm that have both technical expertise and local know-how to tackle complex land allocation issues,” industry sources said.