Global oil and gas field services majors Schlumberger and Halliburton are likely to be technology partners for India in its ambitious programme to explore shale gas, a new source of energy, from next year.
?Indian government and the two close competitors headquartered in the American industrial city Houston, Texas have informally explored the possibility of technology transfers to state-owned oil companies here,? a source privy to the development told FE. Schlumberger and Halliburton are world leaders in supplying products and services to the energy industry.
Detailed emails sent to the companies did not elicit a response. Halliburton, however, promised to respond shortly. The actual sharing of technology would be based on commercial negotiations between the companies. Schlumberger and Halliburton may also enter into such deals with exploration companies in the private sector who would win the blocks.
India wants to tap this unconventional source of natural gas and build a shale gas industry from scratch as the second-fastest growing major economy in the world struggles to meet its energy needs. India imports 80% of its crude oil requirement and 7.5 million metric tonne a year of liquified natural gas. It is keen to have participation from firms with the knowhow and infrastructure for horizontal drilling ? a new technology that allows greater access to the most productive layer in underground rocks ? and hydraulic fracturing, a way of creating fractures in underground shale formations with the help of fluids. Shale exploration needs environmentally sound technology as it could lead to air and ground water pollution.
?Technology transfer will happen once the blocks are licensed to operators,? said the source. The field operator is contractually responsible for executing the gas-field development plan. India and the US last month agreed to promote clean and energy-efficient technologies through a bilateral partnership, and expanded cooperation with the private sector. The US has also agreed to cooperate with India?s assessment and exploration of shale gas reserves and in conducting research.