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ONGC and ConocoPhillips sign MoU for shale gas in India

Oil and Natural Gas Corporation Limited (ONGC), India and ConocoPhillips, USA, have signed on March 30th a Memorandum of Understanding (MoU) to co-operate and develop the shale gas resources in India, North America and elsewhere besides deep water opportunities in Eastern offshore India

The unprecedented growth of shale gas in the USA has generated new hopes in many other countries with major consequences not only on the Upstream activities but also on Midstream and Downstream sectors, see previous article.

In that respect ConocoPhillips has acquired an extensive experience in the field of shale gas exploration & production in the USA, while ONGC is still at a nascent stage. Anyway the purpose of this MoU is precisely for both companies to accelerate the learnings in shale gas.

ONGC and ConocoPhillips intend to implement this co-operation in shale gas in beginning with  exploration in India, but also in North America, and elsewhere.

The U.S. Energy Information Administration has estimated India’s recoverable shale gas reserves could be 69 trillion cubic feet in four basins.

This MoU does not carry financial commitment to focus on technology for deep water and shale gas exploration & production, but later on this co-operation ONGC would offer access to ConocoPhillips for equity stakes in some blocks in India while to gain access to technology to increase output and expand its Oil&Gas global footprint.

Beyond this co-operation in Exploration & Production, ONGC is aiming at:

 – Curbing the actual fall in local Oil&Gas production

 – Boosting the development of a competitive Petrochemical industry and thus to contribute to the sustain India’s booming economy.

In addition, both companies expect to deploy this agreement in deep water areas in Eastern Offshore of India.

For ConocoPhillips, this Indian deal fits in the strategy of this Major to play a global role in shale gas after the service agreement signed in Poland with Lane Energy

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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