Shale Prospects Encouraging for India

Schlumberger has pegged the reserves of gas in shale deposits across India at 300 times higher than Reliance’s Krishna Godavari (D6) basin, by far the largest gas field in the country.

According to sources, Schlumberger, which is carrying out a comprehensive shale gas pilot project for state-owned Oil and Natural Gas Company (ONGC) in the Damodar Valley basin, has made an initial gas-in-place estimate of 300-2,100 trillion cubic feet (tcf) in Indian shale gas basins. In comparison, Reliance’s KG D6 field has proven reserves of just 7-8 tcf.

“Such resources have the potential to move the Indian gas market from gas-constrained to gas-balanced, if not turn the country into a gas-surplus one,” an official with Schlumberger told India’ Financial Express.

ONGC has kicked off exploration activities by spudding its first shale gas well at Durgapur in West Bengal last September and plans to drill three more in Damodar by next year. (Read more HERE)

Schlumberger says that to in order to realise its shale gas potential, India needs to create a conducive regulatory environment and the local oilfield services industry has to double or triple in size so that producers can tap the resource economically.

Service providers will have to step up rig availability three-fold to 300 units across the eight shale gas basins including Cambay and Damodar.

That is not an insurmountable task but service providers would need a clear market signal to make the investment, Schlumberger said.

India hopes to auction the rights to explore for shale gas some time this year.

Source: Financial Express