Global oil giants willing to partner with ONGC

By agencies   |   Wednesday, 13 July 2005, 19:30 IST
Printer Print Email Email
NEW DELHI: Six leading global oil majors, including British Petroleum (U.K.), British Gas (U.K.), Petronas (Malaysia), Petrobras (Brazil), BHP Billiton (Australia) and Andarko (Canada), have expressed their interest for partnering ONGC in its deep water exploration projects. Experts view this development as the beginning of large investments in India’s exploration and production business, which till now had failed to attract the big guys. ONGC plans to partner these firms in deep water exploration projects, which had been put up for bidding under the open acreage systems. These firms can come in as majority partners in the project and can even take up operatorship of the exploration blocks. ONGC had put up at least five deepwater exploration fields on the block. These exploration fields have been given to ONGC on a nomination basis by the government. The company had called for bids from oil majors across the globe to take them on as farm-in partners in these exploration projects. At least three of these blocks belong to the gas-rich KG Basin. While ONGC had invited bids for five blocks, expressions of interest have been submitted for four blocks. The fifth block, which is in the Kerala-Konkan region, has failed to evoke any interest. Subir Raha, CMD, ONGC said: “We have got EoIs from some of the leading oil companies and we are hoping to taken them on as partners in the exploration business.” This is a part of the new open acreage system, which allows ONGC and other upstream companies to offer equity to other oil companies and take them as partners on existing projects. Although these blocks have been given to ONGC on nomination basis, the projects will enjoy all the incentives provided under the new exploration licensing policy.