ONGC, Reliance ink pact for deepwater E&P resource sharing on East Coast

ONGC and Reliance Industries have signed a major agreement at India Energy Week 2026 to share resources for deepwater exploration on India's East Coast. This collaboration in the KG basin and Andaman aims to cut costs and speed up projects.

Oil and Natural Gas Corporation Limited (ONGC) and Reliance Industries Limited (Reliance) signed a path-breaking agreement during the ongoing India Energy Week 2026 to enable resource sharing for deepwater offshore exploration and production (E&P) operations on India's East Coast, particularly across the Krishna Godavari (KG) basin and Andaman offshore. This marks a major step towards cost optimisation, faster execution, and improved asset utilisation in complex deepwater projects, according to a joint statement on Wednesday.

Alignment with Government Initiatives

This agreement is aligned with a forward-looking initiative facilitated by the Oilfields (Regulation and Development) Amendment Act, 2025 (ORDA Act 2025), introduced by the Ministry of Petroleum and Natural Gas (MoPNG), which creates a clear enabling framework for E&P operators to share infrastructure and facilities, both onland and offshore, for more efficient development of oilfields and production of hydrocarbons.

Scope and Benefits of the Agreement

Under MoPNG's enabling initiative, ONGC and Reliance will pursue sharing of key resources required for offshore operations, which may include (but is not limited to): onshore and offshore processing facilities, drilling rigs, marine vessels (MSV, Tugs, PSV), Power, Pipelines, logging and well services, etc.

The agreement is expected to deliver measurable benefits through a structured framework for pooling critical assets and capabilities, including cost optimisation through shared use of high-value rigs, vessels, logistics and specialised subsea equipment. It is expected to improve resource utilisation by reducing duplication and idle capacity across operators; faster mobilisation and execution by improving access to the limited deepwater services available; and stronger operational resilience and safety readiness through shared emergency response and training capabilities.

Strengthening National Energy Security

"The agreement reflects the Government of India's emphasis on energy security through scaled domestic exploration and production, enabled by progressive regulation, streamlined infrastructure utilization, and industry collaboration," the joint statement said. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)