FDI in oil and gas sector in India: FDI and joint ventures in oil and gas sector in India; Current scenario and future prospects along with drawing parallels with emerging and developed economies

Abstract

For the Contemporary Concerns Study, we have chosen to study the FDI in Oil and GasSector in India. Since FDI in Oil and Gas caused lots of successful M&A deals in India, wethought it would be exciting to study pre and Post-FDI in Oil and Gas Sector and if it is asuccessful and progressive step taken by Government of India. The objective of the study areto study the changes in Oil and Gas Sector post FDI in India including study of the key issuesof this sector, factors that influence FDI and joint ventures in India and competitive landscapeand attractiveness of the investment decisions. In order to understand the attractiveness of theindustry, Porter’s five forces were analyzed.The aim of the study was to identify the opportunities created which leads to development ofthe sector in long run. In the course of this study, we also studied the case of FDI in Oil andGas Sector in other developing countries such as Kazakhstan and Uzbekistan. We evenstudied the strategies adopted by various PSU after their alliance with foreign players. Forexample, ONGC has three major strategic aims: improving its recovery factor; intensifyingits exploration activities; and increasing involvement in foreign projects via OVL.As a part of our recommendation, a comprehensive set of recommendations on opportunitiesand threats of these investment techniques for this sector in India were listed down and thekey lessons from the other developing countries were also used to recommend the possiblechanges which can be introduced both in policies and strategies.