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API invites Indian PSUs for exploring shale gas

API invites Indian PSUs for exploring shale gas
PTI
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First Published: Mon, Jan 24 2011. 06 14 PM IST
Updated: Mon, Jan 24 2011. 06 14 PM IST
New Delhi: Canadian firm Americas Petrogas Inc, in which Indian fertiliser major IFFCO has about 15% stake, said on Monday that it has invited Oil India and GAIL to invest in its shale gas exploration project in Argentina.
“We have come to India to be with our strategic partner and investor IFFCO to present some oil and gas opportunities to Indian oil and gas companies. We have invited Oil India and GAIL to partner in our project,” Americas Petrogas Inc (API) President and CEO Barclay Hambrook told reporters,in New Delhi.
Shale gas is natural gas produced from shale.
API has a total of 16 oil and gas blocks in Neuquen Basin of Argentina. Out of which, nine blocks possess an estimated 100 trillion cubic feet (Tcf) of potential shale gas resources, he said.
“To explore shale gas in these nine blocks, about $500 million has to be invested for the next three years. So, we are looking for prospective investors not only from India but also from Oman and the Middle East,” he said.
“The recent shale gas discoveries in Neuquen basin will provide excellent opportunities for Indian companies to seize the potential”, IFFCO managing director U S Awasthi.
As of now, API has invited PSUs - Oil India and GAIL to partner in the shale gas exploration project on the product-sharing basis. “Even private players like Reliance Energy may also join hands,” he said.
He further said that two PSUs are soon expected to visit Argentina to conduct the feasibility study.
Shale gas has been the new focus area in the US and Canada as an alternative to conventional oil and gas, for meeting growing energy needs. Previously, it was very difficult to extract shale gas. Now the modern technology has made it commercially viable to crack tight rock formations and produce large quantities of shale gas, he added.
A gas discovery in API’s blocks in Argentina will provide a significant opportunity to IFFCO for setting up gas-based Ammonia-urea fertiliser plant in the concession area, the cooperative said.
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First Published: Mon, Jan 24 2011. 06 14 PM IST