Galilee Energy, Essar to collaborate on unconventional hydrocarbon assets

Australia-based Galilee Energy and Essar Exploration and Production Ltd (EEPL), a subsidiary of India-based Essar Group, have entered into a non-binding Memorandum of Understanding (MoU) to collaborate on unconventional hydrocarbon assets.

The MoU signifies the intent to explore collaborative opportunities in their respective Coal Seam Gas (CSG) assets in Australia and India, which could potentially include commercial agreements for Galilee Energy’s Glenaras gas project in Australia and Essar’s Raniganj CSG Field in India.

Key opportunities under consideration involve Galilee’s technical and engineering support to enhance Essar’s planned Raniganj CSG Field expansion. This could include various collaboration forms, such as farming or investment. The potential joint effort will leverage Galilee’s extensive expertise and experience in managing unconventional hydrocarbon assets, particularly CSG projects.

With this MoU, both companies have shown their commitment to explore collaboration opportunities in Galilee’s Queensland-based Glenaras gas project and Essar’s Raniganj coal seam gas development in India. The MoU demonstrates an active international interest in enhancing hydrocarbon extraction efficiency and broadening global business partnerships within the energy sector.

David Casey — Galilee Energy Managing Director and CEO said: “This agreement with Essar creates an exciting opportunity to build a strong, strategic and potentially commercial relationship with one of India’s largest and most respected coal seam gas exploration and production companies.

“Essar’s interest in Galilee’s Glenaras gas project may provide the final solution to transitioning the asset’s considerable Contingent Resources into production and the tightening Australian east coast gas market. I am also confident that Galilee’s highly experienced staff can provide Essar with the technical skills and knowledge required to add value in the planned expansion of their Raniganj field, one of India’s major CSG developments and further establish Essar as a leading explorer and producer of CSG in India.”