The Oil and Natural Gas Corporation (ONGC) and Iralian ENI SpA signed an energy swap deal where ONGC will take a 20-25 per cent stake in a Congo block that ENI owns in return for a 30-35 per cent stake in Mahanadi basin block. ENI has a 60 per cent stake in Mer Tres Profonde Nord in the Republic of Congo along with ExxonMobil. The dilution of its Congo block comes in return for ONGC diluting its giving up part of its stake in MN-DWN-2002/1.
While the deal itself is not very big, the cooperation and exposure in sharing information on deep water and offshore exploration opportunities in India and other countries with possibilities of equity interests is what is alluring. It also signifies more intense integration of the Indian economy to the global system. It also provides ONGC crucial technology support and assistance to access difficult to access reserves in deep water blocks.