Shale Gas Triumphs as Oil India Looks for International Assets
India’s state- controlled Oil India released an announcement this evening stating that the nation’s leading companies such as Indian Oil Corp. and GAIL will likely venture overseas in order to fully explore international shale gas reserves. Seven of the emerging country’s largest and most lucrative banks have been brought in as facilitators for India’s purchasing of shale gas assets across the globe.
Two of the countries who have attracted India’s primary attention are Australia and the US. Oil India’s representatives confirmed that the company has ambitions to finalize at least one deal with the shale- rich nations before the year’s last quarter comes to an end.
Shale gas, the sought out fuel is usually mined from rock formations carrying high reserves of natural gas and conventional oil. The emerging market has been especially active in the US, totalling more than 20% of the vast nation’s yearly gas supplies.
The two partnering companies, Indian Oil and GAIL will provide financial backing for Oil India, as it currently negotiates the details of the first in what is expected by the firm’s officials to be a long list of future asset purchases.
The nation’s other oil firms have already ventured into the US for their shale gas interests and buying opportunities. Reliance Industries has notably purchased three shale gas reserve sites across America, putting billions of dollars into the blossoming market that has seen a spike in popularity unlike many other conventional fuel numbers.
Australia has been another point of interest for India and its ever- expanding energy demand. Just last week, the local Bharat Petro Resources acquired two considerable acreage contracts from Perth, where one of Australia’s richest shale gas reserves are located. The deal has ensured Bharat a 50% stake in the region’s shale drilling production, and has marked the contract as the firm’s very first venturing overseas.
India has also been focusing on auctioning off its own shale gas- rich territories. The first of these lucrative auctions will be held next year.
The entire buzz surrounding shale gas in the nation has made the fuel India’s second non- conventional energy source, following the highly popular methane gas fuel. The country itself boasts some of the world’s largest and most profitable shale reserves and local exploration firms have been eager to drill into these yet untapped sources. India’s Oil and Natural Gas Corp. has recently put the final steps on a new project that will see the company venture into the nation’s Damodar Basin.