ONGC to Kick Off Shale Drilling in Indian State of Gujarat on Tuesday

State owned energy major Oil and Natural Gas Corporation (ONGC) will begin commercial exploration of shale gas in the western Indian state of Gujarat on Tuesday, reports Business Standard.

Earlier this year, Indian government cleared the shale policy, which allows national oil companies (NOCs) ONGC and Oil India to explore for shale resources in the country.

According to a Business Standard report published last month, ministry of petroleum and natural gas has drawn a three phase shale exploration plan for ONGC and Oil India.

Oil and Natural Gas Corporation (ONGC) would take up 175 blocks and Oil India Ltd (OIL) another 15 blocks, in three assessment phases. ONGC would get 50 blocks in the first phase, 75 in the second and 50 in the third. OIL would get five blocks each in all three phases, Business Standard reported. Each assessment phase would be for three years.

Second phase of the shale policy is expected to be announced in the near future. In this phase government will most likley allow private player to take part in exploration.

ONGC had recently tied up with ConocoPhillips for technical assistance to explore Cambay, KG, Cauvery and Bengal basins for shale gas.

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