India to Hold Shale Gas Auctions in 2013

India will launch its first-ever bid round for exploration of shale gas by December 2013, the Economic Times reported quoting Oil Minister S Jaipal Reddy.

"We are pursuing the development of shale gas in the country. We have undertaken the mapping of shale gas resources and are working to put in place a regulatory regime for licensing round in shale gas, by December 2013," he said.

Six basins, namely Cambay, Assam-Arakan, Gondawana, KG onshore, Cauvery onshore and Indo Gangetic basins, have been identified that may have shale gas potential.

The country has, so far, only explored and produced conventional oil and gas as well as unconventional sources such as coal bed methane (CBM).

India aims to put in place a policy framework for exploitation of shale gas in a year's time.

Several basins in India are known to hold shale gas resources. Primarily, the focus is on three basins -- Cambay (in Gujarat), Assam-Arakan (in the North-East) and Gondwana (in central India).

India has signed a cooperation agreement with the US Geological Survey for knowledge-sharing in the area of shale gas.

"We are also harnessing coal bed methane: so far, we have held four licence rounds, and commercial production has commenced at Raniganj in West Bengal," Reddy added.