ONGC,Schlumberger to explore shale gas availability

State-run ONGC would tie up with multi-national oilfield services provider Schlumberger for exploring shale gas potential in the country.

Shale is fine-grained sedimentary rock from which hydrocarbons can be extracted.

At present, there is no data available on shale gas reserves in the country. "ONGC is tying up with Schlumberger for assessing the availability of shale gas in the country.

There is no data available about shale gas reserves in the country," Principal Advisor (Energy), Planning Commission Surya P Sethi told PTI on the sidelines of a conference at Petrotech-2009.

"Government has been encouraging oil companies to explore hydrocarbons by providing enough tax benefits.

There are provisions in the Income Tax Act 1961. But not a single proposal for exploration of shale gas came to me during the past seven years of my term in the Planning Commission," Sethi said.

"The oil companies have to decide whether they want to explore shale gas or not. There is a high potential. Government should also encourage exploration of shale gas in the country.

First, we need to know the quantum of shale gas reserves in the country," he suggested.

Horizontal drilling is often used with shale gas wells. Shale gas can be produced for years from shales with natural fractures.

Shale is one of the number of 'unconventional source of natural gas' like coal bed methane (CBM), tight sandstones and methane hydrates.

Schlumberger has expertise in three dimensional seismic survey to ascertain availability of hydrocarbons and provides services for developing and managing integrated project exploration of shale gas and other hydrocarbons.