Wednesday, May 15, 2013

Shale Compendium: Russia, China, and India

  • Bazhenov Shale 80 times bigger than the Bakken shale (Forbes)
  • Current Russian legislation taxes crude exports at 90% revenue per barrel. (Reuters)
  • Putin has posturing publicly that export taxes will be reduced. Proposed extraction tax for unconventional oil was introduced but has not yet passed. (Bloomberg Jun. 2012; Reuters Apr. 2013)
  • Rosneft partners with ExxonMobil for exploration of Bazhenov shale, shale development aimed to offset declines in other fields and maintain its own output. (Reuters)
  • Gazprom began drilling an appraisal well in a second tight oil project (Gazprom News)

  • Royal Dutch Shell received government approval for a production sharing contract with China National Petroleum (US$1B investment). “Shell and CNPC, the state-controlled parent of PetroChina Co., agreed to explore, develop and produce shale gas in the Fushun-Yongchuan block in the Sichuan basin, an area covering about 3,500 square kilometers” (Bloomberg Mar. 2013)
  • TerraWest Energy and Petromin Resources have production sharing agreements with China National Petroleum (Oil & Gas Journal)
  • Gazprom partnered with China National Petroleum for development of Chinese shale fields (Oil & Gas Journal)
  • Total and Sinopec signed a joint agreement to explore shale gas reserves in China (Upstream)
  • Government expected to unveil new policies for shale development (Platts Mar. 2013)

  • Indian Oil Minister M Veerappa Moily told reporters “We have received comments on the draft shale gas exploration policy we had floated.  We are now in the process of putting out a note for the consideration of the Cabinet and hopefully in a months time we will be able to announce the shale gas policy.” (Business Standard Feb. 2013)
  • Indian Oil Secretary, Vivek Rae said “We can not offer existing blocks for shale gas exploration to other companies. However, in future we may have a single round and companies will be allowed to commercially exploit whatever they think is more profitable" (Reuters Mar. 2013)
  • India to unveil shale policy within two weeks (Reuters Mar. 2013)

Written by Anna Leonenko, Research Fellow
Penn State Law, Agricultural Law Center
May 2013

1 comment: