Government of India , Central Cabinet approves policy on shale gas exploration. Two Indian companies to start exploration.2 companies invest in exploration companies. Will this impact guar export? Is it early days to be bothered with this policy change. Will this change the business model of GGP process and export? Will infrastructure bottle neck so common in Indian context, make this one more pipe dream of the government and no short term nor long term effect on guar? My view is that with this announcement multinational O&G companies will now have direct interest in the guar growing and processing and export as this will be seen as competition from home consumption. LEts not forget that any multinational company comes to India for the local market, and once guar finds a local market in O & G the multinationals will trickle in. There business models work on 36 to 60 month horizon. I CUT PASTE THE NEWS REPORT FOR ALL MEMBERS Cabinet approves shale gas and oil exploration program ONGC and OIL have been permitted to explore and produce shale oil and gas from onland blocks that were allotted on a nomination basis before the advent of NELP in 1999 New Delhi : The Cabinet Committee on Economic Affairs (CCEA) approved the long-awaited shale gas and oil exploration programme to boost domestic output. In the first phase, Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) have been permitted to explore for and produce shale oil and gas from onland blocks that were allotted on a nomination basis before advent of the New Exploration Licensing Policy in 1999. “This policy will allow national oil companies (NOCs) to carry out exploration and exploitation of unconventional hydrocarbon resources particularly shale gas and oil in their already awarded onland Petroleum Exploration License/Petroleum Mining Lease (PEL/PML) acreages under the nomination regime,” an official statement issued after the CCEA meeting said. The government would offer shale oil and gas blocks to other companies through an auction planned after such a policy is taken to the Cabinet for approval in next few weeks. Royalty, cess and taxes would be payable at par with conventional oil/gas being produced from the respective areas. Shale gas, or natural gas trapped in sedimentary rocks (shale formations) below the earth’s surface, is the new focus area in the US, Canada and China as an alternative to conventional oil and gas for meeting growing energy needs. As per available data, six basins — Cambay (in Gujarat), Assam-Arakan (in the North-East), Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo-Gangetic basins, hold shale gas potential. Various studies have estimated recoverable reserves of shale gas at between 6 trillion cubic feet and 63 trillion cubic feet. Production requirements and profile for shale oil and gas is different from conventional gas and oil, the statement said
Posted on: Mon, 30 Sep 2013 09:25:51 +0000
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