Oil and Natural Gas Corporation (ONGC) is in preliminary discussions with ExxonMobil, BP, and Shell to explore a partnership in its $5 billion deep-water development project in the Krishna-Godavari (KG) Basin. The focus is on reviving production at KG-DWN-98/2, particularly Cluster 2, which is currently the only segment generating output. By tapping into international oil majors’ advanced technologies and deepwater expertise, ONGC aims to reverse the underperformance of this high-potential asset.
ExxonMobil Emerges as Frontrunner
Among the potential partners, ExxonMobil appears to have a leading edge, following a high-profile visit to India by its CEO in February 2025. The visit signaled the company’s intent to deepen its engagement in India’s upstream sector. However, any partnership structure must navigate the legal and procedural constraints tied to ONGC’s public sector status. A traditional stake sale may not be feasible, making a customized collaboration model essential to align risk-sharing and project control.
Production Trails Projections; Global Help Could Shift Momentum
Despite the project’s massive scale, production from ONGC’s KG block has fallen short of initial forecasts, raising concerns over resource recovery and return on investment. By bringing in international partners, ONGC hopes to inject fresh capital, gain technological support, and accelerate output gains. As reported by projectstoday.com, the involvement of ExxonMobil, BP, or Shell could prove pivotal in reshaping the project’s trajectory, offering both financial backing and specialized know-how in managing complex deep-sea operations.
