Faced with soaring demand, stagnant output at home and a need to diversify from Iranian crude imports lost to Western sanctions, Indian oil companies are hungry for deals like ONGC's Kashagan buy that promise supplies sooner rather than later.
State-run ONGC Videsh has agreed to pay about $5 billion for 8.4 percent of the
Kashagan field in Kazakhstan, the world's largest oilfield discovery in four
decades - which could boost its output by about 16 percent within a year.
The deal adds to a stable of assets that span some of the trickiest territories
in the world - Sudan, Iran, Iraq, Syria and Libya among them - accumulated as
parent Oil and Natural Gas Corporation (ONGC) (ONGC.NS) struggled with domestic
But it's a drop in the ocean for the world's fourth-biggest crude importer - it
buys in 3.5 million barrels per day (bpd) - where the energy gap triggers
constant power cuts. Asia's third-largest economy plans to hit 8 percent growth
in 2014/15 and by 2030 that could lift it to be third-largest in the world and
also the No. 3 energy consumer, according to BP.
Oil supplies have become more urgent as Western sanctions over nuclear projects
squeeze Iran, once India's second-biggest supplier. India's imports from Tehran
slipped by nearly a fifth to 257,000 bpd in April-September.