ONGC, Conoco Ink Shale Gas Exploration Deal

Oil and Natural Gas Corp. and ConocoPhilips signed a deal on Friday for cooperation in development of shale gas assets and deepwater oil and gas blocks.

The companies have been in talks regarding the signing of the agreement for last few months.

The deal could also lead to ONGC offering equity stake in some of its offshore blocks to the US company.

The two companies are expected to cooperate in the field of shale gas through joint studies of opportunities in India, North America and other regions. They plan to bid together for shale gas blocks in India.

India is likely to auction its shale blocks by the end of next year, Prime Minister Manmohan Singh said last week at an industry conference in New Delhi.

In recent years, shale gas has been in focus in India and several state owned and private firms are looking to exploit this unconventional energy source to reduce India’s energy deficit.

Many Indian firms, both public and private, have shown interest in acquiring shale gas assets overseas, particularly the US.