Now Reading: ONGC, Shell Energy India sign MoU for deepwater, LNG
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ONGC, Shell Energy India sign MoU for deepwater, LNG
ONGC and Shell Energy India have signed a non-binding MoU to jointly explore deepwater and ultra-deepwater oil and gas blocks under the government's Open Acreage Licensing Policy (OALP), including current Rounds X…
The Story in Brief
ONGC and Shell Energy India have signed a non-binding MoU to jointly explore deepwater and ultra-deepwater oil and gas blocks under the government's Open Acreage Licensing Policy (OALP), including current Rounds X and XI. The pact, signed on August 10, also covers LNG sourcing opportunities to support India's transition to a gas-based economy. No specific investment or project has been committed.
The collaboration brings together ONGC's position as India's largest explorer and Shell's global upstream expertise. The MoU is part of ONGC's broader push to partner with international majors like ExxonMobil and Chevron for deepwater exploration. The two companies will also explore farm-in and farm-out arrangements on ONGC's existing blocks.
The Indian Opinion
The ONGC-Shell MoU is a non-binding handshake, not a deal. The real test will be whether Shell actually invests in ultra-deepwater blocks that have seen little private interest despite OALP rounds. The government's Samudra Manthan push needs more than memorandums, it needs risk capital. Watch for farm-in commitments in OALP Round XI results next year.
Source: timesofindia.indiatimes.com
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