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ExxonMobil, BP & Shell Discuss Partnership with ONGC in KG block

ExxonMobil, BP and Shell, three of the world’s largest oil companies, have held preliminary discussions with Oil and Natural Gas Corp (ONGC) for a potential partnership in the Indian state-run firm’s $5-billion deep-sea project in the KG basin, according to people familiar with the matter.

ONGC’s KG-DWN-98/2 block off India’s eastern coast has faced prolonged delays and underperformance, prompting the PSU to seek partners with advanced capabilities to navigate the basin’s complex geology, the people said. The KG Block comprises several discoveries grouped into three clusters, with only Cluster 2 currently producing.

The KG Block comprises several discoveries grouped into three clusters, with only Cluster 2 currently producing. The foreign majors are exploring a partnership specifically for Cluster 2.

Exxon, with deep experience in deepwater drilling, is seen as the most serious contender. Its global CEO Darren Woods visited New Delhi in February — the first such visit by an Exxon CEO in a decade — and met oil minister Hardeep Puri, ministry officials and ONGC executives.

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