ONGC and Reliance Sign Agreement for Deepwater Resource Sharing

Oil and Natural Gas Corporation Ltd (ONGC) and Reliance Industries Ltd have entered into an agreement to share deepwater resources on India’s East Coast. The agreement, signed on 27 January 2026, focuses on the Krishna Godavari basin and Andaman offshore. This initiative is part of a broader strategy to enhance cost optimization, expedite project execution, and improve asset utilization in deepwater exploration and production operations.

The agreement is facilitated by the Oilfields (Regulation and Development) Amendment Act, 2025, introduced by the Ministry of Petroleum and Natural Gas. This act provides a framework for exploration and production operators to share infrastructure and facilities, both onshore and offshore. The collaboration between ONGC and Reliance aims to leverage this regulatory framework to enhance operational efficiency in the development of oilfields and production of hydrocarbons.

Under the terms of the agreement, ONGC and Reliance will share key resources necessary for offshore operations. These resources include onshore and offshore processing facilities, drilling rigs, marine vessels such as MSVs, tugs, and PSVs, as well as power, pipelines, and well services. The agreement outlines a structured framework for pooling critical assets and capabilities, which is expected to result in cost optimization through shared use of high-value equipment and improved resource utilization by reducing duplication and idle capacity.

The agreement is part of the Government of India’s strategy to enhance energy security through increased domestic exploration and production. This initiative is supported by progressive regulations and industry collaboration, aiming to streamline infrastructure utilization. The collaboration between ONGC and Reliance is expected to contribute to faster mobilization and execution of deepwater projects by improving access to limited deepwater services and enhancing operational resilience through shared emergency response and training capabilities.

The agreement was signed on 27 January 2026, and the involved parties include ONGC and Reliance, with support from the Ministry of Petroleum and Natural Gas. The collaboration is expected to deliver measurable benefits in terms of cost optimization and improved asset utilization in deepwater exploration and production operations.

Reliance Industries Ltd is a major player in India’s private sector, with activities spanning hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials, renewables, retail, digital services, and media. The company is recognized for its strategic moves in the energy sector and its focus on expanding its capabilities in various domains.

Oil and Natural Gas Corporation Ltd is India’s leading integrated energy company and a Maharatna Central Public Sector Enterprise. As the largest crude oil and natural gas producer in the country, ONGC plays a crucial role in strengthening India’s energy security through exploration, development, and production of hydrocarbons. The company is committed to operational excellence, safety, and sustainability, supporting national priorities and contributing to India’s economic growth and energy transition.