Experts laud ONGC’s efforts in energy industry, see India as a bright spot

Amid gloomy oil price scenario, India is being seen as a bright spot in global energy industry, thanks to state-run ONGC’s efforts.

Jon Fredrick Muller, senior project manager at the Oslo-based Rystad Energy AS, said that what was driving the Indian energy demand growth was strong economic performances and the increasing middle class spending.

He also lauded Oil and Natural Gas Corporation (ONGC) for taking a lead in calling tenders for chartering of offshore drilling rigs and support vessels of upstream projects.

"This makes India a bright spot for the industry,” he said.

"ONGC has not cut down Exploration & Production spending like most other national oil companies have done so. They have kept their demand up, they have needs for their deep-water drilling equipment -- floaters and jack-ups for shallow water, as well as Offshore Support Vessels," said Geir Sjurseth, managing director, global head for offshore finance at DVB Bank SE.

"They (ONGC) are issuing tenders which have attracted both national and international companies that would like to supply their equipment, as longer term employment opportunities in other markets are difficult," he said.

Experts noted that ONGC was enjoying attractive rates.

"ONGC have charter/hired offshore rigs and vessels at 30-40 per cent lower rates than previous contracts," said Manav Kumar, president and director of Singapore-based Dynamic Drilling Holdco Pte Ltd.

The Indian government is emphasising the ONGC-led industry to cut import dependence by 10 per cent in next seven years to 68 per cent, the industry sources said.

"Overall, India represents a huge opportunity for upstream sector because of the large exploration activities and field redevelopment plans of the Indian companies," said one delegate.