Govt amends definition of hydrocarbon to include shale

The government has amended the Petroleum and Natural Gas Rules 1959 to include shale in the definition of petroleum, a change that would allow private companies to explore and produce the resource in the blocks they already operate.

"Petroleum means naturally occurring hydrocarbons, whether in the form of natural gas or in a liquid, viscous or solid form, or a mixture thereof, but does not include coal, lignite, and helium occurring in association with petroleum or coal or shale," the oil ministry said in a notification.

Prior to this, the definition excluded shale and therefore barred companies from exploiting it from fields that are producing conventional oil and gas or coal-bed methane.

Commenting on the development, Great Eastern Energy Corporation Ltd Managing Director and CEO Prashant Modi said: "The amendment of the definition of petroleum is a welcome move as it would open up exploration of all hydrocarbons in existing fields which is line with the new Hydrocarbon Exploration Licensing Policy (HELP)."