CCEA approves Petroleum Ministry’s proposal on shale gas exploration and exploitation
The proposal of the Ministry of Petroleum and Natural Gas on the policy on exploration and exploitation of shale gas and oil by National Oil Companies (NOCs) on acreages under the nomination regime has been approved by the Cabinet Committee on Economic Affairs.
How the policy on exploration/exploitation of shale gas by NOCs would help?
The policy will facilitate NOCs to perform exploration and exploitation of unconventional hydro-carbon resources particularly shale gas and oil in their already awarded Petroleum Exploration License and Petroleum Mining Lease (PEL/PML) acreages under the nomination regime. The policy also stipulates the terms/conditions for guiding these activities.
Why the government is bringing a different policy for shale oil/gas?
The production requirements and profile for shale oil and gas is different from conventional gas and oil. Therefore, there was a need of the policy in order to achieve early development of these resources and to address issues evolving out of Exploration & Production activities in shale gas and oil.