OIL in talks with US-based shale gas cos for JV

State-run Oil India Limited (OIL) is likely to form a joint venture (JV) with a US-based shale gas company to acquire shale gas assets globally, a top official said.

"We are negotiating with a couple of US-based shale gas companies to form a JV. This will enable us in terms of technology in shale gas exploration and also help us in acquiring shale gas assets globally," OIL Chairman and Managing Director N M Borah told PTI here.

Shale gas (gas locked in sedimentary rocks) is an emerging area in the hydrocarbons segment and has become an important source of energy in the few countries that have been able to commercially exploit this resource.

Meanwhile, India is likely to sign a cooperation agreement with the US Geological Survey later this year for knowledge-sharing in the area of shale gas.

"This proposed cooperation agreement will benefit OIL to get into shale gas exploration," he said.

In India, OIL is looking at shale exploration opportunities in regions such as the Assam-Arakan and Cambay Basin, Borah said, adding that OIL also intends to explore shale gas opportunities in the US and Australia.

At present, the company is carrying out geological studies on various shale gas exploration regions in India.

"Our study is on to identify shale gas exploration opportunities in the country. We hope in the next two-three years we will be in a position to explore this new opportunity," Borah said, adding, "We have plans to invest around Rs 300-500 crore for shale gas exploration over the next 3-4-years."

At present, the exploration and production activities of OIL, a Navratna company, are spread over 1 lakh square kilometres, much of it in the North-East. The North-East accounts for all of OIL's crude oil production and the majority of its gas production.

Rajasthan is the other producing area of OIL, contributing 10 per cent to its total gas production.

Additionally, OIL's exploration activities are spread over onshore areas in the Ganga Valley and Mahanadi Basin. OIL also has a participating interest in NELP exploration blocks in the Mahanadi Offshore, Mumbai Deepwater and Krishna- Godavari Deepwater Basin, besides various overseas projects in Libya, Gabon, Iran, Nigeria and Sudan.