The Oil and Natural Gas Corporation (ONGC) may explore the Krishna-Godavari (KG) offshore petroleum fields completely on its own if talks for a strategic partnership with multinational companies fail.
The PSU major is in talks with Exxon Mobil, BHP Bilton, BP Plc, and ENI of Italy to develop and produce oil and gas from its deepwater exploration blocks in the KG basin.
It is also planning to outsource appropriate technology like Reliance Industries has done to develop and produce oil and gas from these blocks.
“We are in talks with some prospective international partners but we will not wait endlessly,” an ONGC executive on the company’s board said.
“Even Reliance Industries did not have any technology partner and had outsourced the technical expertise required to develop its KG-D6 gas block,” the executive said. “ONGC, too, shall explore the possibility of appointing an international service contractor to develop and produce from its deepwater exploration blocks.”
The recent walkouts by leading multinational oil companies such as Norway’s Statoil, Barzil’s Petrobras and UK-based BG Plc from two of its blocks in the KG basin sitting next to the KG-D6 gas fields of Reliance, had given a major jolt to ONGC's plans of producing oil and gas from its deepwater blocks.
ONGC officials agree that though the company has been in talks with international energy majors for a strategic tie-up for its KG basin blocks, much headway could not be made “due to lack of clarity over concessions being offered for exploration by the government.”
ONGC has already announced several gas discoveries in KG blocks. However, on account of a lack of technical expertise, it has not been able to proceed with its plans to develop the block.