In a letter to the union oil ministry, P Elango, CEO of Cairn India asked the ministry to do away with the discrimination between NELP and pre-NELP blocks while giving the right of first refusal for shale gas exploration.
It may be recalled that the draft policy for exploration of shale gas provides for giving operators of block awarded under New Exploration Policy (NELP) since 2000, the right of first refusal for exploiting the unconventional resource. The policy, however, does not confer the same rights to operators of pre-NELP blocks like Rajasthan.
According to the available data, six basins — Cambay (in Gujarat), Assam-Arakan (in the North-East), Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo Gangatic basins, hold shale gas potential. Rajasthan block too may hold shale gas potential.
Elango argued that the right of first refusal be given to all currently operating blocks, irrespective of pre-NELP or NELP, to ensure consistency and uniform implementation of the shale gas policy.
He feels that the existing licencees or leasees must have the exclusive rights to explore for and develop all hydrocarbon resources encountered in a block and or shale, which is just another form of hydrocarbon resource.
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