ONGC aims to sell deepwater stakes to oil giants

Oil and Natural Gas Corp is in talks with BG, Eni and Shell to sell stakes in deepwater developments off the country's resource-rich eastern coast, the Financial Times said on Monday.

The newspaper cited AK Hazarika, chairman of the group, which is India's biggest oil and gas body, as saying the state-owned group was looking for a partner with the technological expertise to exploit the country's vast but untapped deepwater oil and gas reserves.

"For deepwater exploration, we are definitely looking for some partner at least for the development part...we definitely want a company that can support us on the technical front."

"We are talking to many companies - in particular BG, Eni, Shell," Hazarika was quoted as saying.

The group is seeking to replicate the lucrative USD 7.2 billion (4.4 billion pound) deal struck between BP and Reliance Industries, according to the FT.

ONGC, which has a market capitalisation of USD 55 billion, has already been collaborating with the British, Italian and Anglo- Dutch explorers but is looking to deepen ties with foreign companies to boost the development of its 85 deepwater blocks in the Indian Ocean.

Hazarika told the FT that the group planned to focus more on developing its ailing domestic assets than seeking opportunities overseas.

Shell, BG and Eni were not available for immediate comment.