India has signed an accord with the US for cooperation in shale gas technology that will help the energy-hungry nation exploit its vast unconventional resource, Oil Minister Murli Deora said on Monday.
The agreement was one among the several agreements signed during the visit of President Barack Obama.
"The memorandum of understanding (MoU) was signed on November 6," he told reporters in New Delhi.
India does not have technology to exploit shale gas, an unconventional gas trapped in sedimentary rocks and the US is a pioneer in the field.
Oil Secretary S Sundareshan said the MoU will help India identify the shale gas resource in the country and frame policy regime for exploitation of the resource.
India is targeting the first round of auction of shale gas areas for exploration before the end of 2011.
India intends to join a boom in shale-gas exploration that has fueled more than $39 billion of acquisitions in the US by companies including Reliance Industries.
The MoU was signed by Sudhir Bhargava, Additional Secretary, Ministry of Petroleum and Natural Gas and David Goldwyn, Coordination (International Energy Affairs) in the US Department of State.
Sundareshan said the main elements of MoU include shale gas resources in India, technical studies to commence on shale gas exploration in India and training of Indian personnel in the area of shale gas.
"US Geological Survey will carry out studies on shale gas resources and will provide report to India," he said.
Since production of shale gas is difficult, a new fiscal regime would be needed and exploration laws changed to allow such production, he said adding current exploration licenses for oil and gas do not include unconventional sources.
