Shale gas exploration acreages to be available from next year

The Directorate General of Hydrocarbon (DGH) today said that shale gas exploration acreages in the country will be available from next year. 

At present, the Ministry of Petroleum is working on a shale gas regime to find out the most suitable one for the country. 

"We are expecting that by next year shale gas exploration acreages will be given. Currently, we are also working to find out a better shale gas regime. This shale gas regime will be a win-win situation for all," DGH's Director General Sunil Kumar Srivastava told reporters here. 

Areas such as Cambay basin, Krishna-Godavari basin and Assam-Arakan basin are considered as most prospective areas for shale gas exploration, he said. 

However, Srivastava said that given the variability of shale across India, a rapid pace of source development would probably come only after successful explorations in the initial basins. 

The government signed a memorandum of understanding (MoU) with the US on shale gas, where the US Geological Survey (USGS) is likely to do a resource assessment of certain shale basins in India, he said. 

Besides, the Government plans to move to the open acreage licensing policy (OALP) regime by 2012, he said adding the OALP will make India a favourable destination globally for exploration and production of crude and natural gas. 

This will enable upstream companies to bid for any oil and gas block without waiting for the announcement of bidding under new exploration licensing policy (NELP) regime. 

Commenting on ninth round of new exploration licensing policy (NELP), Srivastava said, "NELP-IX will be formally launched in September, followed by road show." 

The production from Reliance Industries' KG Basin block is on track and producing as much as they committed

Source: Economic Times

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