NEW MISSION

New Delhi, Sept. 26: India is likely to sign a technical co-operation agreement with Washington to explore shale gas during US President Barack Obama’s visit in November.

“Talks are on for technical co-operation with the United States Geological Survey (USGS). The government is expected to sign a shale gas technology agreement with the USGS — that has been in the forefront in boosting shale gas prospects in the US — during Obama’s visit,” a senior oil ministry official said.

Officials said the pact would help Indian officials to assess the resource and get trained in exploration.

Shale gas is an unconventional natural gas found in non-porous rocks. Extraction involves tapping the gas trapped between the layers of shale rocks, similar to the extraction of gas from between coal seams.

Global majors such as Exxon, Chesapeake, Davon and Pioneer are the market leaders.

The huge potential of shale gas has prompted Mukesh Ambani’s Reliance Industries to undertake some strategic deals in the US.

The directorate general of hydrocarbons, which is responsible for studying and identifying potential shale gas blocks in India, plans to draw a detailed road map by March.

Exploration laws need to be changed because current norms do not cover unconventional sources. The government plans to come out with policies and a production sharing mechanism, including the sharing of profits with state governments, before the first round of blocks are auctioned in August next year, officials said.

ONGC foray

ONGC has ventured into shale gas. It has started to drill the first well at Ichapur village near Durgapur in Bengal’s Burdwan district.

Several basins in India are known to hold the gas. The focus is on three basins — Cambay (Gujarat), Assam-Arakan (Northeast) and Gondwana (central India).

With the development of new technology such as horizontal drilling and sand cracking, extraction has become more economical.

In the US, shale gas has significantly reduced the country’s dependence on imported LNG.

Shale gas reserves in the US have been known for a long time. However, drilling technology to facilitate commercial exploitation was developed only recently.