ExxonMobil, BP, Shell Circle India's $5 Billion Deepwater Challenge

ExxonMobil, BP, and Shell are in preliminary discussions with India’s state-owned Oil and Natural Gas Corporation (ONGC) to explore a potential partnership in ONGC’s $5 billion deep-water project in the Krishna-Godavari (KG) basin.

ONGC is seeking global expertise to boost output from its underperforming KG-DWN-98/2 block, focusing particularly on Cluster 2—the only section currently in production.

ExxonMobil is seen as the front-runner, bolstered by its CEO’s visit to India in February. However, ONGC’s public sector status complicates a conventional equity deal, necessitating the development of an alternative partnership structure that minimizes risk and navigates legal constraints.

Current output from the KG block has fallen well short of earlier projections. The involvement of major international oil companies could significantly alter the project’s outlook by bringing in advanced technology and fresh capital.

News by Rahul Yelligetti.