ExxonMobil takes a chance on India’s upstream

The major’s involvement is a win for New Delhi as it seeks to promote offshore exploration

ExxonMobil and Indian state-owned oil and gas producer ONGC have agreed to explore territory off the east and west coasts of India, in what is being seen as a major show of faith in the country’s deepwater potential. The US major is bucking a trend among foreign investors, many of whom have withdrawn from the South Asian upstream in recent years. “We understand [ExxonMobil] has studied the deepwater potential of Indian basins—and of neighbouring countries too—for a number of years, so it must see some resource potential to proceed,” says Angus Rodger, research director for Asia Pacific at consultancy Wood Mackenzie. “If large resources of gas can be found and developed at a competitive cost,