ONGC and ConocoPhillips of the US on Friday signed a memorandum of understanding for cooperation in exploration and development of shale gas resources in India, North America and other geographies.
Mr Sudhir Vasudeva, CMD, ONGC, said that the agreement was an MoU and that there are no financial implications.
The MoU is also for exploring deepwater opportunities in the Eastern offshore basin in India.
“In the first phase starting today we will explore Damodar, Cambay, KG and Kaveri basins for Shale gas. It will last six months. Studies would be done for another 19 deep water water blocks,” said Mr Vasudeva
Mr James Handschy, Global Chief Geoscience, ConocoPhillips, said his company had so far focused on other parts of the world. Now it wanted to focus on India, and hence this agreement with ONGC.
ConocoPhillips has extensive experience in the field of shale gas exploration and exploitation in the US and holds large acreage position. ONGC's endeavours in shale gas are at a nascent stage.
The cooperation between the two oil majors is expected to accelerate the learning in shale gas for both the companies.
The companies intend to initiate the cooperation in shale gas exploration through joint studies of opportunities in the identified areas.
At a time when the world is witnessing nearly static reserve growth from conventional resources, the unprecedented growth of shale gas in the USA has generated new hope for all energy deficient countries.