Will ONGC’s Partnership with BP Raise Concerns on India’s Energy Security?

New Delhi, 10 February 2025 : Oil and Natural Gas Corporation Limited (ONGC) and British Petroleum (bp) have signed a Memorandum of Understanding (MoU) to explore collaboration in the energy sector. The partnership will focus on oil and gas exploration, production, trading, and new energy opportunities both in India and internationally. The MoU was signed during India Energy Week in New Delhi on 10 February 2025. The signing ceremony witnessed the presence of India’s Minister of Petroleum and Natural Gas, Shri Hardeep Singh Puri; Petroleum and Natural Gas Secretary, Shri Pankaj Jain; ONGC’s Chairman and CEO, Shri Arun Kumar Singh; and bp’s Executive Vice President, William Lin, along with senior executives from both companies. Key Areas of Collaboration The partnership aims to focus on the following: • Sharing best practices for deep-water exploration and potential joint exploration. • Enhancing production from ONGC’s mature fields. • Joint bidding for offshore blocks under India’s Open Acreage Licensing Program (OALP). • Strategic cooperation in areas like carbon capture and sequestration. The MoU is valid for three years, during which ONGC and bp will work together to identify and pursue business opportunities in these areas. Concerns and Potential Risks Though this collaboration promises growth and innovation, some industry experts are questioning its long-term impact on ONGC’s operational independence and India’s energy security. Sharing control over mature fields with bp could dilute ONGC’s authority in key projects. Furthermore, bp’s focus on high-profit ventures might push ONGC’s traditional projects to the sidelines. Will this partnership strengthen ONGC or pose a threat to India’s energy independence? The coming years will reveal the true impact of this agreement.