ExxonMobil, ONGC to develop large domestic oil and gas project

ExxonMobil is in discussion with energy major Oil and Natural Gas Corporation (ONGC) for a large domestic oil and gas exploration project. The Ministry of Petroleum and Natural Gas is in talks between private sector oil refining companies and PSUs to decrease the cost of crude oil purchases. According to an official, the focus of the agreement is on Andaman offshore exploration. In the meeting between public and private sector oil refiners for joint purchase of crude oil, Minister of Petroleum Hardeep Puri said that the private firms are enthused by the plan. It is the first contract in India, where oil refineries usually approach oil producers. There is some synergy between PSUs, but private companies have not been involved yet. India is looking forward to reducing the cost of crude oil purchases. Private companies, including Reliance and Nayara Energy, account for over a third of India's total crude oil capacities. ExxonMobil and ONGC signed a Memorandum of Understanding (MoU) in 2019 to allow two petroleum companies to undertake joint studies. The agreement includes working on deepwater and other Petroleum Exploration Licence (PEL) units of ONGC on the east and west coast and open acreages for joint tender. According to an official, the partnership between ExxonMobil and ONGC has entered the second phase. The company is examining the existing deepwater assets under this partnership. Hardeep said that the government had encouraged them to explore and produce more in India. The centre has passed some decisions on sharing knowledge and data with the companies. He added that the government would provide anything to boost domestic oil and gas production. From 26 sedimentary basins, only eight are under exploration. Image Source