India proposes terms for shale oil, gas

The government of India has invited public comment on draft fiscal terms for development of oil and gas resources in shale (OGJ Online, Mar. 13, 2012).
Aug. 1, 2012

The government of India has invited public comment on draft fiscal terms for development of oil and gas resources in shale (OGJ Online, Mar. 13, 2012).

The US Geological Survey has estimated India’s technically recoverable shale gas resource at 6.1 tcf in three of the country’s 26 basins and said oil potential in shale also exists.

The Ministry of Petroleum and Natural Gas envisions a contract different from the agreement in place for conventional resources. It already uses a special contract for coalbed methane.

Non-Indian operators would be able to bid for shale contracts.

Basic terms in the draft contract are ad valorem production-level payments, royalty, and license fees.

Contract duration would be 32 years in two phases: 7 years for exploration and 25 years for production if development proceeds.

Prospective contractors would bid on the basis of minimum work program, production-linked payments, technical ability, and net worth.

About the Author

Bob Tippee

Editor

Bob Tippee has been chief editor of Oil & Gas Journal since January 1999 and a member of the Journal staff since October 1977. Before joining the magazine, he worked as a reporter at the Tulsa World and served for four years as an officer in the US Air Force. A native of St. Louis, he holds a degree in journalism from the University of Tulsa.

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