India May Allow Foreign Firms to Bid For Shale Gas Blocks

Apart from going in for the open acreage system for auction of the shale gas blocks in various parts of the country, India is likely to allow 100 per cent participation of foreign companies when it puts up its first auction in 2013.

According to the policy, domestic private companies would also be eligible to take part in the auction, Business Line reported.

The newspaper report said that operator’s technical capability will be evaluated and will be considered as one of the basis for award of contract. The operator, in case of a consortium, should have a minimum of 25 per cent participating interest.

The Directorate-General of Hydrocarbons (DGH) has identified six basins under Phase-1 — Cambay, Gondwana, Assam, KG onshore, Cauvery onshore and Indo-Gangetic basins.

ONGC and the Central Mine Planning and Design Institute (CMPDI) are under the process of identifying 11 more basins, Business Line said.