ExxonMobil, BP, and Shell are in holding early discussions with ONGC to potentially partner in its USD five billion deep-sea project in the Krishna-Godavari (KG) basin.

ONGC seeks international expertise to enhance production from its underperforming KG-DWN-98/2 block, particularly Cluster 2—the only currently producing segment.

Exxon is viewed as the leading contender, especially after its CEO visited India in February. Legal and procedural complexities due to ONGC’s public sector status make a standard stake sale difficult, prompting the need for a new structure that ensures risk mitigation.

The current production from ONGC’s KG block is significantly below earlier projections. The global oil majors’ potential entry could reshape the project’s trajectory through technological support and capital infusion.