Opportunities in International Shale Gas Development



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In a recent white paper, I have outlined how India has proposed lucrative terms for foreign companies to come into India to help with shale gas development.  As gas prices fall domestically, gas demands in countries such as India, China and Japan are at an all time high.  The prolific nature of shale gas basins in many countries including India, make the circumstances attractive for foreign investment in those countries.

Following are a few key points from the report that I believe will be of interest to energy developers and investors:

  • 620 million people in northern and eastern India recently experienced the world's largest blackout
  • India, as the fourth largest energy consumer in the world (after U.S., China and Japan), is in need of meeting a projected demand of natural gas by 2016-2017 of 473 MMSCND from its current demand of 173 MMSCMD (1 MMSCMD = 35.32 MCF)
  • Natural gas output by India last year was 146 MMSCMD, underscoring the amount of production India will have to generate in order to keep up with demand
  • This has created the need to vigorously explore for unconventional or alternate hydrocarbon resources such as CBM, shale gas oil and gas hydrates
  • Acreage in six shale gas/oil basins has been identified and will be offered through an international competitive bidding process 
  • This shale gas bidding plan will allow 100% foreign participation in the development of Indian shale gas resources 
  • This is a departure from India's terms for conventional oil and gas exploration  
  • The plan is set for shale gas licensing to successful bidders, which may take place as early as December 2013
  • In addition to 100% foreign participation, India is offering other proposed incentives including an exemption of duties on imports for shale gas equipment, a tax-free regime for shale oil production and a fixed percentage of revenue on gas sales to the government
  • There is quite a contrast in terms from recently active countries around the world, including neighboring countries to the west, namely Afghanistan and Iraq (Central and the Kurdistan region)

These are very interesting times for those interested in international oil and gas development especially in various shale gas basins and opportunities for the industry abound.

I hope this alert has proved useful, for a full copy of the white paper, or to discuss other international opportunities, please click the link below to contact me directly by email.

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