Top story - BPCL buys stake in Australian shale gas fields

BPCL has entered the shale gas space in Australia through an agreement with Norwest Energy through its 100 per cent arm Bharat PetroResources, for farming into two exploration acreages in the Perth basin EP413 and TP/15, which hold shale gas potential. BPRL's commitment for these projects is up to 15 m Australian Dollars (approximately $13.5 m) for exploration and drilling funding, including a carry of part of Norwest's share of the investment            

Norwest, which holds 100 per cent interest in TP/15 and a little over 55 per cent in EP413, is the operator of these blocks. Australia Worldwide Exploration is an ally in EP 413 with a 44 per cent stake. Wells are scheduled to be drilled in both acreages within a year. BPRL will acquire half of Norwest's interest in each of these blocks. Eventually, it will hold 50 per cent in TP/15 and 27.8 per cent in EP 413. BPRL already has interests in two exploration permits in the Australian region and the current acquisition would offer an entry into shale gas.

The move is keeping in line with BPCL's aggressive focus on exploration and production. BPCL would use the Australian experience and follow suit across different geographies.