State-run Oil and Natural Gas Corporation (ONGC) is in talks with US energy firm ConocoPhillips to explore the possibilities of joining hands for the exploration of oil and gas in Indian deep sea and shale gas in North America.
ONGC is planning to sign a memorandum of understanding (MoU) with ConocoPhillips for cooperation in exploration and development of shale gas and deep water opportunities, a company official said.
The company in a statement said “discussions with ConocoPhillips to explore possibilities of any business partnership are at a very nascent stage’’.
The state-owned firm is keen to rope in a foreign major with technology to develop deep water finds like the ultra deep sea UD-1 discovery in KG-DWN-98/2 block in Krishna Godavari basin. ConocoPhillips last October visited the data room for 19 deep water blocks of ONGC.
The official said ONGC had approached 12 companies working in South East Asia including ConocoPhillips of the US for potential farm-in and a deep water flyer for east-coast blocks was sent to them.
ConocoPhillips has shown interest in ONGC deep water blocks, he said, adding that the draft MoU provides for potential exploration and development of shale opportunities in India, North America and elsewhere and potential deep water opportunities offshore India.
ONGC has expressed interest in joining hands with ConocoPhillips, or its affiliates, in shale assets in North America.
This is ONGC’s fourth attempt to get a credible foreign partner in its exploration acreage after Petrobras of Brazil, Statoil of Norway and BG Group of UK walked out of its ventures for various reasons.
While Petrobras and Statoil walked out because of delays in getting regulatory approvals for picking up stake in blocks such as KG-DWN-98/2, BG withdrew as part of its global portfolio realignment.
If talks with ConocoPhillips succeed, ONGC is looking at bringing to production dozens of deep sea finds it has made in the Krishna Godavari and Mahanadi basin.
ConocoPhillips is the third-largest integrated energy company in the US and the fifth-largest refiner in the world.