ONGC signed a MOU with GSPC to acquire stake of KG basin block

India: ONGC signed a pact with GSPC to operate in its KG basin block. GSPC announced a major discovery of natural gas in KG basin in June,2005 and spent USD3 billion for its production. The commercial production however cannot be started due to challenging geography which could damage drills and equipment. The unexpected hurdles promoted increase in expenditure, debt & delays. ONGC is expected to expedite the production with its technical expertise after the memorandum agreement.     

TechSci Research depicts that the increase in exploration & production activities would create the market for oilfield services in the country. Moreover, oilfield services involve a wide range of services that facilitate oil and gas exploration & production (E&P). These services are provided to smoothen the drilling process, thereby eliminating the waste produced during drilling and enhancing the oil recovery process by providing repair and maintenance of bore wells. In India, Gujarat, Rajasthan and Assam account for maximum demand for oilfield services due to large scale oil and gas exploration and production activities being undertaken in these states. "

According to released report of TechSci Research “India Oilfield Services Market Forecast and Opportunities, 2020”, the country’s oilfield services market is projected to surpass US$ 7.8 billion by 2020, on account of anticipated increase in oil and gas E&P activities. Onshore oilfield services segment holds majority share in India’s oilfield services market; however, the offshore oilfield services is forecast to exhibit higher growth during 2015- 2020. Comprising three vital type of services i.e. cementing, direction drilling, hydro fracturing services, drilling services segment accounts for the largest share in the oilfield services market, followed by drilling & completion fluids services, wireline services, pressure pumping services and coiled tubing services