The need for energy as a prime vehicle for growth in the global economy is stimulating large investments by transnational corporations. India is a fast-growing oil consumer in the Asia-Pacific region. India's growth rate for hydrocarbons is expected to be around 4% per annum compared to a global growth rate of about 2% per annum.
India has hydrocarbon resources in excess of 205 billion boe (28 billion tons). Only 18% of India's total area of 1.2 million sq miles (3.14 million sq km) is explored. This offers vast opportunities for exploration and production for global players. Opening up of the Indian economy has brought in many foreign companies in India like Cairn Energy, British Gas, Niko and Heramec. India has the potential to grow at 7% to 8% per annum for decades.
The Indian upstream hydrocarbon sector has grown significantly with the evolution of Mumbai High offshore fields. Mumbai High offered opportunities in around 230 ft (70 m) water depth and served as the platform for domestic companies to integrate their capabilities.
India is now on the threshold of developing recently discovered oil and gas reserves in the deepwater on the eastern coast on the lines similar to that of Mumbai High offshore fields in the conventional shallowwater arena in the mid seventies.
Development along the west coast continues to grow. The latest project is the Vasai East Development Project for Bassein field, involving a consortium of Samsung and Larsen and Toubro Ltd. (L&T).

Emerging deep water
India's East Coast has the potential to be another Gulf of Mexico, and the government of India is supporting accelerated exploration efforts in deepwater areas. Technological and financial risks associated with deepwater development can be significantly mitigated through transnational partnerships.
India has the second largest pool of scientists, engineers and designers and is one of the two largest English speaking nations in the world. Companies like Engineers India Limited (EIL), Kværner Powergas India Limited and L&T have proven capabilities in upstream oil & gas engineering. Many of them have the experience of working abroad with global engineering and construction (E&C) companies.
Indian engineering companies have state-of-the-art computer hardware, and their software offers comprehensive computer-aided design and engineering, including 3-D plant design software with interference checking and walk-through features. Indian companies have acquired extensive capabilities in specialized engineering analysis covering lift analysis, vibration analysis and transportation analysis.
In a recent project for construction and installation of a gas injection platform (GIP) for the United Arab Emirates, L&T, Kværner Powergas and the project installation contractor, Seaway Heavy Lift (SHL), Netherlands, undertook a detailed lift analysis for the 3,200-tonne GIP topsides built in India by L&T. The topsides weight exceeded the capacity of the crane to be mobilized by SHL, and a detailed re-evaluation of the lifting scheme was carried out to reach the minimum possible weight and install the system offshore as separate lifts, at the same time minimizing the risk of damage to the structure during installation. The installation has since been successfully completed.
Indian E&C companies are using the latest software in project management and have leveraged information technology for successful project execution. These companies are the forerunners in integrating enterprise-wide resource planning (ERP) system with project management of large projects.
Indian engineering and project execution companies can offer cost-effective man-hours to the global industry.
The Indian manufacturing sector is one of the most comprehensive in Asia in terms of applications, sizing and metallurgy of equipment manufactured. It is globally competitive in terms of quality, safety, delivery and price. Leading Indian manufacturers have experience in handling diverse metallurgies, including cladded materials and sour service. They are familiar with all the major international manufacturing codes and practices and have proven capability of meeting complicated design requirements. Indian manufacturing companies and the Indian shipyards have fabrication facilities with established capacities of 3,000 tonnes per module and exotic materials of construction.

Indian partners
Globally, there has been unprecedented increase in demand in the E&C sector, and the existing workforce is not adequate to meet these growing demands. Aging workforce demographics in western countries and the E&C sector has been facing problems owing to non-availability of people with the right experience, skills and competencies. Innovative partnering is emerging as an answer to accommodate the unprecedented increase in global demand.
In particular, deepwater development is characterized by diverse technology groups such as hull and ship systems, mooring and turret design, deepwater and sub-sea engineering, process and flow technologies, critical fabrication, and project management. No single company in the world has a monopoly on expertise in all these areas.
Further, deep water creates high-value projects, typically in the range of US $1 billion and higher. They are more complex and involve a greater degree of risk than traditional projects. That situation leaves the door open for transnational partnerships with Indian companies in engineering fabrication, project management, offshore hook-up and commissioning works, supply of critical process equipment, and control systems. Local content in the above areas would lead to reduced costs and a better handling of project risks.
Leading Indian E&C companies have built strengths in project management in line with international practices and have a comprehensive mechanism in place for effective contract and risk management.
India can leverage its position as a high-value engineering, project management and high-end manufacturing center.
The Indian E&C sector has an established track record in joint execution of large-value projects through collaboration with overseas partners. Indian companies like L&T, EIL and others have successfully partnered with companies like Global Industries of the United States, Samsung Heavy Industries of South Korea, and John Brown of the United Kingdom. Among recent examples are the Pipeline Replacement Project (2005 to 2007) and the Vasai East Development Project (2006 to 2008) for Oil & Natural Gas Corp., India, each with a value in excess of US $400 million.
Success of any transnational partnership would require trust, shared vision, integrity, complimentary capabilities, synergy in perception of opportunities, full delineation of work responsibilities, and full commitment of human and other resources. It will require cross-cultural sensitivity and the ability to work in international teams with emphasis on nurturing the relationships and value creation at all stages.

Deepwater opportunities
The Indian deepwater sector can be addressed by a collaborative approach between international companies with established track records and Indian
E&C companies with competent human resources.
Indian E&C companies can independently handle verticals like process modules and topsides on an EPC basis. Indian manufacturers can build hulls; floating production, storage and offloading vessels; and topsides from a logistics point of view. The large pool of engineers can contribute in the engineering space as well as during commissioning and start-up.

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