Modi's oil ambition gives services firms a US$27b lifeline

Mumbai

INDIA is offering global oilfield service providers starved of new contracts a US$27 billion lifeline as the government's ambition to cut fuel imports drives fresh investment.

Spending plans are ratcheting up and stalled projects restarting after the government in March announced pricing freedom for natural gas from deepsea fields that begin production this year.

Coming at a time when the cost of rigs and services has halved, that's prompted India's largest explorer, Oil and Natural Gas Corp (ONGC), to launch its biggest development campaign yet. Reliance Industries Ltd is preparing to restart work at four offshore oil and gas blocks.

The flurry of activity is providing some respite to services companies including Schlumberger Ltd, Technip SA and Halliburton Co which were stung last year by more than US$100 bill…