India’s largest exploration company, Oil and Natural Gas Corporation (ONGC), is in the process of selling stakes of some deep-water blocks to global energy giant Royal Dutch Shell. ONGC owns 56 deep-water blocks at present.
“Selling stakes in some of the deepwater oil and gas blocks to Shell is part of a larger tie up that ONGC is working out with this Anglo Dutch multinational energy firm, already having a huge presence in India,” a senior ONGC official said.
The strategic partnership being stitched between the two energy majors at present would involve billions of dollars worth of investments in the oil and gas sector. Besides exploration and production (E&P), the two may jointly invest into oil refining, LNG and also the marketing of petroleum products in India.
HT on April 21 was the first to announce that a big deal is brewing between ONGC and Shell and that the latter is planning to stage a comeback into India’s exploration sector after a long spell.
ONGC’s chairman Sudhir Vasudeva confirmed to HT that the management of the two firms have held various rounds of discussions for this partnership.
A partnership with ONGC is a win-win for both as this will not only announce Shell’s entry into the E&P front after 16 years but will also provide ONGC with the cutting edge technologies from the Anglo Dutch energy major.