Hydro and Indian state oil company ONGC have a penned a deal giving the soon-to-be-merged Norwegian oil company access to exploration acreage on the deepwater India shelf and the prolific east coast.

The Norwegians will take up a 10-percent stake in Block 98/2 in the KG basin. ONGC will get technology support from Hydro to increase recovery at the Vasai East oil field.

More than deepwater, India, like offshore Norway, feature challenging high-pressure, high-temperature geology. Hydro is expected to merge with high-temperature, high-pressure expert, Statoil, by October 2007.

Meanwhile, the Indian exploration deal covers 32 offshore blocks in 3,000 meters of water. Hydro has the option to be joint operator with ONGC and take an equity share in any block.

Block 98/2 has turned up gas for partners Cairn and Petrobras, while Vasai East oil off western India presents “challenges in producing oil from thin oil zones”. Hydro experience developing the Troll field’s thin layers is seen coming into play.