Business Standard: Why Indian companies are so high on shale gas

With a ban on gas exports from the US to countries like India, recent investments in shale gas may appear puzzling. However, there is more to it than meets the eye

Earlier this month, Oil India Ltd and Indian Oil Corporation together snapped up a 30 per cent stake in Houston-based Carrizo Oil & Gas’s Niobrara shale gas asset in Colorado for $85.2 million. This will make it not just the third partnership forged by Indian companies with Carrizo, but also the most recent play for shale gas assets by them. While Reliance Industries Ltd (RIL) has a 60 per cent stake in US-based Marcellus’ shale play in Carrizo, GAIL has a 20 per cent stake in Eagle Ford Shale.

However, with ONGC Videsh Ltd (OVL), the pioneering Indian company in overseas oil acquisitions, yet to make any dent in the shale- gas business, the question is whether these acquisitions are savvy plays or just flawed deals.  MORE