New Delhi: State-owned ONGC and Reliance Industries Ltd (RIL) have entered into a landmark agreement to share deepwater offshore resources for exploration and production (E&P) operations on India’s east coast, a move expected to drive cost optimisation, faster execution and better utilisation of critical assets.
The agreement, signed on January 27, will enable collaboration across offshore blocks in the Krishna Godavari (KG) basin and the Andaman offshore, the companies said in a joint statement on Wednesday.
The pact has been facilitated by the Oilfields (Regulation and Development) Amendment Act, 2025 (ORDA Act 2025), introduced by the Ministry of Petroleum and Natural Gas, which provides a regulatory framework for E&P operators to share infrastructure and facilities, both onshore and offshore.
Under the agreement, ONGC and Reliance will explore sharing a range of high-value resources, including onshore and offshore processing facilities, drilling rigs, marine vessels, power infrastructure, pipelines, and logging and well services. The companies said this structured approach to pooling assets would help reduce duplication and idle capacity in capital-intensive deepwater projects.
The collaboration is expected to deliver multiple benefits, such as lower operating costs, improved access to scarce deepwater services, quicker mobilisation of equipment and enhanced operational resilience and safety preparedness through shared emergency response and training capabilities.
The agreement aligns with the government’s push to strengthen energy security by scaling up domestic exploration and production, supported by progressive regulation and industry collaboration. Deepwater projects are seen as critical to arresting India’s production decline and reducing import dependence.
ONGC, India’s largest oil and gas producer, said the initiative reflects its focus on efficient and technology-led development of complex offshore assets, while Reliance said the partnership fits into its broader hydrocarbon E&P strategy on the east coast.
The companies said further details will emerge as specific sharing arrangements are finalised under the enabling framework.