The oil ministry has retracted its move to allow explorers such as Reliance Industries and Cairn India to explore shale oil and gas in their existing blocks without bidding after the finance ministry said that the new entrants should also be given an equal opportunity.
Besides, the oil ministry has accepted the finance ministry's view as it was raised during inter-ministerial consultations, an important bureaucratic process that precedes any cabinet decision.
According to the report, the proposed policy is to be presented before the cabinet committee on economic affairs soon, that will allow ONGC and Oil India to exploit shale in 176 identified on-land areas where they are exploring or producing conventional crude and natural gas.
Moreover, the ministry has planned to have a separate policy later to deal with exploration of shale resources in blocks awarded to private firms for conventional oil and gas and coal bed methane, a government official told media.
Dion Global Solutions Ltd.