India May Allow Firms to Explore Shale Gas, CBM on Block Allotted Under NELP Rounds

India may allow firms to explore for shale gas and CBM in their existing blocks awarded under the New Exploration Licensing Policy (NELP) rounds, according to a report by Deccan Chronicle newspaper.

Government sources told the newspaper that they were considering a proposal to allow this flexibility to oil and gas companies as this would help to fully utilise hydrocarbon potential of a block.

“Permission for extraction ‎of new hydrocarbon resources from existing oil and gas blocks would come with a rider that all investment in the new exploration activity would be ring fenced and cost will not be clubbed with its existing operations,” the official told Deccan Chronicle.

Exploration blocks under NELP are currently given for specific hydrocarbon extraction (oil, gas or CBM) but the government feels that a few of these may also have potential to produce shale gas and CBM and would remain unexplored in the absence of a clear policy.