India's largest energy explorer Oil & Natural Gas foreign arm ONGC Videsh is set to acquire shale gas assets in the US.

Mr RS Butola MD of ONGC Videsh said that “The company is pursuing several leads.” Declining to give specific details of expected deals, he said that "OVL will enter into partnership instead of going for complete buyouts.”

He added that prospective partners will be experienced local players.

America's shale gas assets have drawn domestic energy firms' attention after Reliance Industries invested in the unconventional energy resources early this year. In April, RIL announced its decision to invest around USD 1.7 billion in developing Marcellus shale in southwestern Pennsylvania in a joint venture with Atlas Energy of USA. The asset has estimated natural gas resource of 13.3 trillion cubic feet reserves, larger than RIL's KG-D6 property.

It is also reported that RIL may forge a partnership with Chesapeake Energy Corp's Eagle Ford shale acreage.

Following RIL's footsteps, state-owned Indian Oil, Bharat Petroleum and Oil India are also planning to acquire shale gas assets in the US and Australia.

Shale gas is an unconventional source of natural gas trapped in hard rocks called shale, a common rock formation across the world. Natural gas is contained in micro pores of shale. Due to shale's low permeability, gas flow from the rock is prohibited. Hence, its extraction was viewed as uneconomic. But technology is now available for economic production of shale gas.

(Sourced from Economic Times)