Why are the Majors interested in deepwater India?

ExxonMobil, Total and Chevron are looking at deepwater opportunities with state-owned ONGC, with more partnerships in the pipeline. They have been lured by the availability of new unexplored blocks, attractive fiscal terms and rising prices. India’s vast energy market holds many attractions. Not just scale and growth, but also a compelling decarbonisation narrative as gas is required to displace coal. However, for this switch to materialize more domestic production is required to reduce reliance on expensive LNG imports. The OALP-IX bid round was launched in 2022, featuring basins that were previously off-limits. However, the new blocks are in remote, high-risk plays and lead times will be long. Lingering concerns remain over above-ground bureaucracy, red tape and regulatory tinkering. We look at the pros and cons, the acreage, geology, gas market and pricing, and ask - is the risk/reward balance in deepwater exploration sufficiently tempting to bring in the industry’s big players?