ONGC IN TALKS WITH FOREIGN COMPANIES FOR JOINT-BIDDING IN NEXT OALP AUCTION

State-owned company

is in talks with several foreign companies for an agreement to bid jointly in the tenth round of the Open Acreage Licensing Policy (OALP). The company is looking for a partner because deepwater and ultradeep water exploration is a capital-intensive job and comparatively more difficult than normal exploration. Drilling one deepwater well entail costs of approximately Rs 1,000 crore so with a partner, it helps to distribute the associated risk of the company. Trading with an attractive P/E of 9.49, the stock price has surged 20% in the last 2 months, showing a strong momentum. Such expansion plans can boost the profitability of the company.