In a strategic move to boost offshore energy exploration and operational efficiency, Oil and Natural Gas Corporation Ltd (ONGC) and Reliance Industries Ltd have signed an agreement to share resources like rigs and supply vessels used in finding and producing oil and gas.
The two firms signed the agreement "to enable resource sharing for deepwater offshore exploration and production operations on India's East Coast, particularly across the Krishna Godavari (KG) basin and Andaman offshore" on the sidelines of India Energy Week (IEW), ONGC Director (Production) Pankaj Kumar said.
This marks a major step towards cost optimisation, faster execution, improved asset utilisation in complex deepwater projects and creating stronger synergies between India's largest oil and gas producer and the nation's biggest and most valuable company, which have adjacent fields and operations, particularly off the east coast, he said.
The pact seeks to explore opportunities to jointly utilise resources, infrastructure and technical capabilities across offshore energy activities so as to reduce duplication of efforts, optimise capital deployment and support timely development of offshore assets, which are critical to meeting India's growing energy demand.
"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," ONGC said.
According to ONGC, the agreement is expected to help in cost optimisation through shared use of high-value rigs, vessels, logistics and specialized subsea equipment. It would also lead to improved 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.
This the second collaboration between ONGC and Reliance in recent years. ONGC, Reliance and BP in 2024 come together to bid for Block GS-OSHP-2022/2, a 5,454-sq-km offshore tract in the Saurashtra Basin in the Open Acreage Licensing Policy (OALP) bid round IX. The block, classified as a Category-II basin, holds significant exploratory potential, and the partners will jointly assess its hydrocarbon prospects.
Industry analysts say the agreement reflects a broader push by New Delhi to attract investment, share risks and strengthen energy security through collaborative exploration, particularly as offshore resources become increasingly vital to domestic supply.
ONGC and Reliance have adjacent oil and gas fields, for which they hire resources ranging from rigs to offshore supply vessels (OSV) and tug boats. Presently, when one firm hires a foreign-flagged rig or vessel, it seeks approvals for operations of such vessels from multiple authorities, including ministries of defence and home affairs and director general of shipping.
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