ONGC and GE joined together to support E&P activities for next 3 years

India: Oil and Natural Gas Corporation (ONGC) and GE Oil & Gas has entered into a multimillion dollar frame agreement under the which GE will supply subsea production equipment, an estimated 55 subsea wellheads (SG5) over three years in order to support ONGC’s exploratory drilling campaign in shallow to medium waters. The first wellhead is slated to be supplied in the fourth quarter of 2016 under this contract. This move is expected to improve energy supply capabilities in the region through the discovery of new fields offshore.

TechSci Research depicts the ongoing exploration of hydrocarbons and the new energy policy and gas pricing policy is likely to boost the exploration and development activities of ONGC, that would in turn, increase the domestic production. The domestic increase in production will help reduce the budget deficit. India meets 80% of its crude oil demand through imports leading to huge import bills. It will also lead to increased investment by private sector in India’s oil and gas exploration industry. The ongoing Exploration & Production (E&P) activities will give a major boost to India Oil Field Services market.

According to a released report of TechSci Research, “India Oilfield Services Market Forecast & Opportunities, 2020”, the country’s oilfield services market is projected to surpass USD7.8 billion by 2020, on account of anticipated increase in oil and gas E&P activities. Government’s decision of auctioning 69 idle oil and gas fields of state-owned ONGC and Oil India to private companies on new revenue sharing model is expected to boost oil and gas E&P over the next five years, which in turn would fuel growth in the country’s oilfield services market through 2020.