ONGC signs pact with ExxonMobil for deepwater exploration; stock price declines over 3%

State-owned oil exploration and producing company Oil and Natural Gas Corporation (ONGC) has signed an agreement with ExxonMobil for deepwater exploration in east and west coasts of India, an official statement of the company said.

The collaboration areas focus on the Krishna Godavari and Cauvery Basins in the eastern offshore and the Kutch-Mumbai region in the western offshore. There has been a scientific exchange of exploration data in the last few years, which has led to this partnership, the statement read.

“This collaboration between ONGC and global petroleum giant ExxonMobil will boost our confidence in going further ahead in deepwater exploration in the east coast of India where the potential is quite significant,” Petroleum Secretary Pankaj Jain said.

ONGC hopes to move to development wherein the inherent strength of ExxonMobil would be beneficial for efficient fast-track monetization and this will enable ONGC to ensure steps towards Energy Security for India, Director (Exploration) ONGC Rajesh Kumar Srivastava said.

Meanwhile, ONGC share price around 1 PM declined over 3 per cent on the NSE to trade below Rs 135 apiece. 

ICICI Securities has given Buy rating with a target price of Rs 185 per share, implying over 33 per cent upside in the stock price from the current level.