Energy giant ExxonMobil is in talks to buy stake in some producing oil and gas fields in India, Oil Minister Dharmendra Pradhan has said.
For years, ExxonMobil has sat on the sidelines evaluating business opportunities in the Indian upstream, seeking an easier policy framework and studying geological data for a possible bid for exploration acreage. Last year it tied up with ONGC, India’s largest state-run oil and gas producer, for possible joint bidding for exploration licenses. Exxon has yet to make a bid for an exploration license in India.
“Exxon Mobil is in active discussion with some of our companies to participate in some of our producing fields,” Pradhan said without elaborating. The move to forge a partnership for some producing fields surprised many as India hadn’t so far offered a stake in big producing fields that can attract the likes of ExxonMobil and the marginal producing fields that had been offered by ONGC and Oil India hadn’t attracted big oil firms.
A deal between ExxonMobil and Indian producers may mean a big shift in the government’s policy. In recent years, the emphasis in government’s policy has been on drawing foreign investors to exploration acreages, not big producing fields.
Pradhan told an industry gathering last month that domestic oil and gas companies should function like holding companies, farming out their projects and involving global players with advanced technologies to speed up execution.
Indian upstream sector has witnessed limited interest from foreign players despite a slew of policy changes the government has introduced in recent years. British giant BP has been the sole foreign bidder for exploration license under the revamped bidding rounds in the last few years – it along with Reliance Industries bid for just one block.
France’s Total has been keen on marketing natural gas in India but not shown interest in the upstream segment.
Exxon too has been keen on marketing natural gas and has forged partnerships to deepen the liquefied natural gas (LNG) market in the country.
