Hindustan Petroleum Seeks Shale, CBM Expertise

Hindustan Petroleum Corp. Ltd. (HPCL) is evaluating is acquisition of an Australian companies with expertise in coal bed methane and shale gas.

“We are looking at a small-size company which has the technology for CBM and shale gas. We are building our capacity and are currently looking at around 10 companies. We will select one out of these,” said a top executive HPCL executive of the state-owned entity.

HPCL’s efforts are aimed at being able to qualify technically when India bids out shale gas blocks shortly.

India is finalizing a policy framework for commercial exploitation of domestic shale gas reserves and launching auctions for blocks shortly. The country has sought the assistance of the US Geological Survey to identify areas where shale gas reserves exist, to transfer the technology required to tap these and to finalize an exploration policy.

“We are evaluating companies. Nothing has been finalized yet,” said another HPCL executive who also requested anonymity. He too declined to name the firms.

While there are no official estimates of shale gas reserves in India, Schlumberger Ltd. has estimated the country has shale gas reserves of between 300 trillion cu. ft (tcf) and 2,100 tcf.

Opportunities in alternative energy sources such as shale gas and gas hydrates is driving Indian companies to look at overseas acquistions in an attempt to build technical and commercial credentials and competencies.

Source: Livemint