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Shale Gas Policy to Be in Place by Oct

DGH directed to assess gas potential in 11 basins

  • The oil ministry plans to put in a place a national shale gas programme by October to facilitate auction of shale gas blocks by this year end.Oil secretary GC Chat-urvedi directed upstream regulator directorate general of hydrocarbons (DGH) last month to make complete assessment of shale gas potential in 11 basins across the country by May, a government official privy to the development told Financial Chronicle without wanting to be named.

  • DGH has outsourced the job of identification of shale gas acreages to Central Mine Planning & Design Institute (CMPDIL), a subsidiary of Coal India. At the same time, government-run explorer ONGC has also undertaken studies for assessment of shale gas potential in Raniganj in West Bengal and North Karanpura in Jharkhand.ONGC has tied up with Schlumberger for exploitation of shale gas reserves. Samples have been tested at Schlumberger laboratory in the United States and results are expected by April. “The oil secretary has asked ONGC and CMPDIL to continue their assessment of shale gas blocks, while the oil regulator would finalise the policy framework,” the official added.

  • DGH submitted a preliminary draft of shale gas policy to the oil ministry after consulting ONGC, Oil India and Gail. Chaturvedi advised DGH to also examine provisions for production-sharing contract with respect to conventional oil, gas and coal-bed methane to prevent legal complications. DGH would submit a revised draft shortly, the official said.The national shale gas programme would be similar to the CBM exploration policy. Blocks would be awarded by the cabinet committee of economic affairs (CCEA) based on recommendations by the empowered committee of secretaries that could include top bureaucrats from oil, finance, law and environment ministries.

  • DGH has advised the oil ministry that shale gas wells have longevity of almost 25-30 years against 8-10 years for conventional gas wells. Prospective shale gas basins in the country are Cambay, Gondwana, Assam-Arakan, KG, Cauvery onshore and Indo-Gangetic belt. A larger number of wells need to be drilled per unit area for exploiting shale gas compared with what is required for conventional oil and gas exploration. This means more land requirement and environmental clearances.

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