RIL Not Keen on India Shale Exploration

Reliance Industries (RIL) is not keen on exploring shale gas potential in India despite predicting that production from shale gas in the US will be in excess of one-third of its aggregate gas production this year, Economic Times reported.

The company has invested $5.7 billion in its shale acreages in the US.

A company executive talking to Economic Times said RIL is not very keen on shale in India given the legal framework here. "The laws in the US are very different; there, a particular resource belongs to the person who owns the land in which it exists; but in India, if the resource happens to be in the land owned privately, even then it belongs to the government; so obviously private owners will not be incentivised to give their land up especially as the land utilisation policy does not always ensure a fair sale and leads to extended negotiations," said the executive.

RIL is a partner in the shale resource base of Marcellus and Eagle Ford Shale gas plays in the US, through its three joint ventures with Chevron, Pioneer and Carrizo. Company’s shale gas business has become a significant contributor to its E&P portfolio, Economic Times said.

The US business clocked record revenues and operating profit of $616 million and $483 million, respectively, in the last fiscal, Economic Times said.