Indian firms Oil and Natural Gas (ONGC) and Oil India plan to use foreign firms’ expertise in a bid to explore shale oil and gas in India, which approved rules last month for the drilling of the unconventional fuel for reducing oil imports.
ONGC has plans to approach the US-based energy firm ConocoPhillips for shale drilling.
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The company will take up exploratory work in ten wells in blocks that are spread across western Cambay, eastern Cauvery and Krishna Godavari basins in the country, with commercial drilling expected to begin in 2014.
ONGC’s exploration team has been assigned a target of ten wells.
The western state of Rajasthan and northeastern state of Assam have been identified by Oil India for initial shale drilling.
The company may align with the US-based Carrizo Oil & Gas, which is engaged in the exploration, development, and production of oil and gas.
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By GlobalDataIn 2012, Oil India and Indian Oil purchased a 30% stake in Carrizo’s Niobrara shale assets in Colarado, US, in a transaction worth $82.5m, Reuters reported.
Last month India approved rules for drilling of the unconventional fuel as it wants to quickly tap its resources to cut a growing crude oil imports bill.
According to the US Energy Information Administration, the country may hold back as much as 96tcf of recoverable shale gas reserves, which is equivalent to about 26 years of its gas demand.
The new policy is not yet communicated to ONGC and Oil India, which only have permissions to drill for shale oil and gas in old blocks.
Image: India-based ONGC’s platform at Bombay High in the Arabian Sea. Photo: courtesy of Nandu Chitnis
