Shale MoU may be signed next month, says Deora

India to launch first round of shale gas auction by Dec 2011.

India and the US may sign a memorandum of understanding (MoU) on sharing technology for shale gas exploration when US President Barack Obama visits the country next month.

“We are trying to see if we can conclude an MoU between India and the US during President Obama’s visit,” Petroleum and Natural Gas Minister Murli Deora said during the launch of the ninth round of the New Exploration and Licensing Policy (Nelp-IX) roadshow in Mumbai.

India will also launch its first shale gas auction round by December 2011. “We are evolving a policy framework for shale gas and the first shale gas round is planned for end-2011,” Petroleum Secretary S Sundareshan said. He added that the potential of shale gas in India was being examined by the Directorate General of Hydrocarbons. India is known to hold shale gas resources in several basins, including the Cambay (in Gujarat), Assam-Arakan (in the North-East) and Gondwana (in central India).

The ninth auction round offers eight deep water, seven shallow water, 11 on-land and eight small blocks. Of the total, 19 blocks are new areas and 15 are areas relinquished by energy explorers due to various technical reasons. The last date for bidding under this round is March 18, 2011.

Mukesh Ambani, chairman and managing director, Reliance Industries (RIL), made a brief appearance at the roadshow. Though his company did not bid for any blocks in the eighth round of Nelp, he said it would evaluate blocks offered in this round. “RIL is enthusiastic on existing oil, gas acreage and will continue to look at exploration opportunities. We hope to find more oil and gas reserves in India,” Ambani said on the sidelines of the roadshow.

RIL has three shale gas joint ventures in the US, while ONGC and Oil India are looking at shale gas assets overseas.