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Shale Exploitation Policy

AOGO has informed MoPNG regarding the recommendations for shale exploitation policy :

Nomination Blocks

Pre NELP Blocks

NELP Blocks-Rd I - IX

CBM Blocks  

The above policies, licenses issued under these as well as contract signed under these permit E&E activities with the following limitations :

Regime

Type of Hydrocarbons

Nominated Blocks

No limitations

Pre NELP Blocks

No limitations

NELP Blocks

CBM not permitted

CBM Blocks

Only CBM permitted

Thus for the first three categories :

  • There is no limitation on exploiting of any type of rock  - Legally no additional benefit devolves on contractors when the opportunities to explore/exploit tight sands or Shale
  • No significant work has been done during the actual life cycles of above regimes/ contracts/licenses for the following reason
  1. New Technology Developments reaching commercial stage only
  2. Non or limited availability of required services in India under existing PSCs by authorities
  3. Uncertainties & reservations about the processes, cost-recovery, policies /timeline required for clearances of environment,water availabilities and disposal
  • India is challenging not only geologically but also as a domain to operate in. Our systems are generally rated as amongst the most industry unfriendly in the world. It therefore is likely to take a long time substantial flexibility patience and deep pockets on the part of contractors to reach the exploitation, till the above variables are firmed up
  • Exploitation of these resources is in the mutual benefit or Government and Contractor. Both shall have costs of first moves. Assuming it to be a one sided position where there is only one beneficiary shall be a mistake

Source:SNP Infra Research