Oil and Natural Gas Corporation (ONGC) is in advanced discussions with multiple international energy companies to submit joint bids in the tenth round of India’s Open Acreage Licensing Policy (OALP). The move signals the state-run explorer’s strategy to share risks and strengthen its technical capabilities as it targets complex offshore blocks. By teaming up with global players, ONGC aims to enhance its competitiveness while pursuing deepwater and ultra-deepwater exploration opportunities, which demand high investment and specialised expertise.
Strategic Partnerships to Tackle High-Cost Deepwater Exploration
Arunangshu Sarkar, Director (Strategy & Corporate Affairs) at ONGC, highlighted the importance of partnerships in managing exploration risks. He noted that drilling a single deepwater well can cost nearly ₹1,000 crore, making collaboration critical for spreading financial exposure. “With a partner, it becomes easier to distribute the associated risk, particularly in a lower oil price environment and with the growing technological complexity of deepwater exploration,” Sarkar explained. As a result, ONGC is actively pursuing alliances that combine capital strength, technical know-how, and operational efficiency.
Global Trends Reshape Exploration Landscape
Many international oil companies are reducing upstream exploration activities due to rising costs and uncertain returns. Instead, several firms are pivoting toward trading and downstream operations, which offer relatively stable margins. Despite this cautious outlook, ONGC remains committed to expanding its resource base. The company believes strategic collaborations can offset costs while enabling access to advanced technologies required for offshore drilling.
Building on Past Collaboration Success
This is not ONGC’s first attempt at international partnerships. In earlier OALP rounds, the company submitted bids alongside global majors such as BP, leveraging shared expertise to strengthen its exploration portfolio. With the tenth OALP round approaching, ONGC is looking to replicate and scale those partnerships to unlock new hydrocarbon potential across India’s sedimentary basins.
Strengthening India’s Energy Security
As reported by projectstoday.com, through joint bidding and global cooperation, ONGC aims to accelerate exploration, improve discovery success rates, and contribute to India’s long-term energy security. As offshore projects become increasingly capital-intensive, partnerships are likely to play a defining role in shaping the future of India’s upstream oil and gas sector.
