ONGC aims at commercial production of shale gas by next year

The company is getting technological support for the venture from ConocoPhillips

October 04, 2013 08:58 pm | Updated November 16, 2021 08:45 pm IST - NEW DELHI:

Oil and Natural Gas Corporation (ONGC), on Friday, announced that it had drawn up plans to start commercial production of shale gas next year.

Addressing reporters on the sidelines of the ‘Oil and Gas Summit’ organised by Indian Chamber of Commerce (ICC), ONGC Chairman and Managing Director Sudhir Vasudeva said the Cabinet Committee on Economic Affairs (CCEA) had allowed ONGC and Oil India Ltd (OIL) to tap shale resources in blocks allotted to them on a nomination basis. “We are planning to drill 10 wells this year and hope to start commercial production next year,” he added.

ONGC plans to start drilling for the unconventional shale hydrocarbon resource in Gujarat sometime this month. The company is getting technological support for the venture from ConocoPhillips.

Cambay in Gujarat is one of the basins that has been identified as potentially bearing shale resources. Shale extraction uses hydraulic fracturing, which involves blasting water, sand and chemicals underground to release trapped oil and gas.

In the first phase, ONGC and 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. The government will 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 the next few weeks.

Shale gas, or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface, is the new focus area in the U.S., Canada and China as an alternative to conventional oil and gas. 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.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.