Vedanta Plans Shale Exploration in India: Report
Mumbai-listed private firm Vedanta is expected to start exploring from shale oil and gas in its block located in the western Indian state of Rajasthan, Business Standard reported October 20.
“We will be starting testing for shale by the end of this year and exploration over the next two quarters,” said Sudhir Mathur, CEO Cairn Oil & Gas, Vedanta.
In August 2018, the Indian government allowed oil and gas exploration companies to explore for unconventional hydrocarbons such as shale gas and CBM under their existing contracts. The government is of the view that this policy will enable the realisation of prospective hydrocarbon reserves in the existing contract areas which otherwise would remain unexplored and unexploited.
Under the old regime of production-sharing contracts (PSCs), contractors were not allowed to explore and exploit shale or other unconventional hydrocarbons in already allotted licensed/leased areas. Acreages held at present by various contractors in PSCs and CBM blocks and national oil companies (NOCs) in the nomination regime constitute a significant part of India’s sedimentary basin.
In 2013, Cairn had sought the first right of refusal for shale exploration in its Rajasthan block, the newspaper said. At present, Vedanta is the largest private sector oil producer in India contributing around 27% to the domestic production.