India consolidating oil and gas licenses

India’s Union Cabinet is consolidating hydrocarbon types in its oil and gas licenses in a move that for the first time will allow nonstate operators to develop shale resources.

Until now, India has awarded separate licenses, most recently production-sharing contracts, for conventional resources and coalbed methane.

And it has approved shale exploration and development only for licenses awarded by nomination of state-owned operators. Oil & Natural Gas Corp. and Oil India Ltd. therefore hold the only shale-development rights.

The new policy will allow exploration for and development of all resource types under existing production-sharing contracts and nomination licenses.

“This policy will enable the realization of prospective hydrocarbon reserves in the existing contract areas which otherwise would remain unexplored and unexploited,” the Cabinet said in a press statement.