India Approves Shale Policy

India has given a go ahead to the much awaited shale oil and gas policy boosting prospects of exploration of the unconventional gas in the country.

On Tuesday, Cabinet Committee on Economic Affairs (CCEA) approved the proposal of the Ministry of Petroleum and Natural Gas on the policy on exploration and exploitation of shale gas and oil by National Oil Companies (NOCs), namely ONGC and Oil India Limited, on acreages they already own. 

NOCs shall apply for grant of shale gas and oil rights in their interested acreages and are required to undertake a mandatory minimum work programme.

The company is permitted three assessment phases of a maximum period of three years each. Royalty, Cess and Taxes would be payable at par with conventional oil/ gas being produced from the respective areas. 

According to U.S. Energy Information Administration India may have as much as 96 trillion cubic feet (tcf) of recoverable shale gas reserves.