India’s state-run oil major ONGC is moving closer to finalising partnerships with foreign companies to jointly bid in the 10th round of the Open Acreage Licensing Policy (OALP). Arunangshu Sarkar, Director (Strategy & Corporate Affairs), said discussions with several overseas partners are in an advanced stage.
“We would prefer a partner because exploration in deepwater and ultradeep waters is capital-intensive and comparatively more difficult,” he stated. He added, “[Drilling] one deepwater well entail costs of approximately ₹1,000 crore. With a partner, it helps to distribute the associated risk, especially amidst the lower oil price regime along with the advancement of deep-water technology.”
Sarkar noted that many international oil companies have reduced their focus on exploration. “This is a global trend. International oil companies have been shying away from exploration because this is a high-cost business and are going more towards trading and downstream. It is a bit difficult to get a partner, but we are trying to get a partner,” he stated. He also pointed out that national oil companies continue to remain active in exploration.
In previous OALP rounds, ONGC had partnered with foreign explorers, including BP.
Separately, earlier this year, ONGC formed 2 joint venture companies — Bharat Ethane One Ltd and Bharat Ethane Two Ltd — with Japanese shipping major Mitsui O.S.K. Lines (MOL). The purpose is to import ethane from the US using 2 Very Large Ethane Carriers (VLECs). The vessels will ensure long-term and secure transport of imported ethane to ONGC Petro additions Limited (OPaL).
The VLECs will be constructed by the joint ventures at Samsung Heavy Industries (SHI). According to the company, this move will strengthen supply chain reliability and enhance strategic control over feedstock logistics.
Sarkar also highlighted ONGC’s offshore logistics plans. “At ONGC, we need offshore supply boats for supplying raw materials and resources from our base to offshore platforms,” he stated. “At present, we have chartered boats which we hire and take their services. Also, ONGC floated a tender to procure four PSV (Platform Supply Vessel). so ONGC will have both own and hiring vessel.”
The steps underline ONGC’s strategy to expand exploration while strengthening logistics and supply chain capabilities.
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