A day after the Union Cabinet cleared shale gas and oil exploration policy, state-run ONGC Ltd today said that the company would drill about four wells this year in Cambay basin in tie up with ConocoPhillips, with an investment of about Rs 200 crore.
A day after the Union Cabinet cleared shale gas and oil exploration policy, state-run ONGC Ltd on Wednesday said the company would drill four wells this year in Cambay basin in tie-up with ConocoPhillips, with an investment of about Rs 200 crore.
The government on Tuesday cleared the policy, which allows national oil companies like ONGC and Oil India to start exploration in their existing nomination blocks in the first round. “We are planning to drill our first well next month and would drill around four wells this year with an investment of Rs 150-200 crore,” said N K Verma, director (exploration) of ONGC.
ONGC has already tied up with ConocoPhillips to explore the Cambay, KG, Cauvery and Bengal basins for shale gas. According to government estimates, the country has a potential to produce around 63 trillion cubic feet of shale gas.
The government move is pushed by the studies that at least 176 nomination blocks would have shale deposits. According to estimates by the US Energy Information Administration, India has a total reserves of 96 trillion cubic feet (tcf) of recoverable shale gas. Shale gas refers to natural gas that is found trapped within shale formations below the earth surface. The government is planning to put at least 100 blocks for bidding in the next level in Cambay, Krishna Godavari and Ranigunj.