ONGC and Reliance Industries have signed a landmark agreement on January 27, 2026, to share deepwater resources on India’s East Coast. The agreement aims to optimize costs, accelerate execution, and improve asset utilization in complex deepwater projects, particularly in the Krishna Godavari (KG) basin and Andaman offshore. This move, facilitated by the Oilfields (Regulation and Development) Amendment Act, 2025, promotes efficient development and production of hydrocarbons.
Strategic Resource Sharing
Oil and Natural Gas Corporation Limited (ONGC) and Reliance Industries Limited (Reliance) have entered into a path-breaking agreement on January 27, 2026, to enable resource sharing for deepwater offshore E&P operations. This collaboration will focus on India’s East Coast, specifically the Krishna Godavari (KG) basin and Andaman offshore, marking a significant step towards cost optimization and faster project execution.
Key Objectives and Benefits
The agreement aims to improve asset utilization in complex deepwater projects. This initiative is aligned with the Oilfields (Regulation and Development) Amendment Act, 2025 (ORDA Act 2025), which provides a framework for E&P operators to share infrastructure and facilities. The shared resources may include onshore and offshore processing facilities, drilling rigs, marine vessels, power, pipelines, logging, and well services.
Expected Outcomes
The agreement is expected to deliver several measurable benefits, including:
- Cost optimization through shared use of high-value rigs, vessels, logistics, and specialized subsea equipment.
- Improved resource utilization by reducing duplication and idle capacity.
- Faster mobilization and execution by improving access to limited deepwater services.
- Stronger operational resilience and safety readiness through shared emergency response and training capabilities.
Government Support and Emphasis
The agreement reflects the Government of India’s emphasis on energy security through scaled domestic exploration and production. This is enabled by progressive regulation, streamlined infrastructure utilization, and industry collaboration.
ONGC’s Role
ONGC is a premier integrated energy company playing a pivotal role in strengthening India’s energy security through hydrocarbon exploration, development, and production across onshore and offshore basins. With a focus on operational excellence, safety, and sustainability, ONGC is advancing technology-led, efficient, and responsible energy solutions.
Reliance Industries’ Contribution
Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated revenue of INR 10,71,174 crore (US$ 125.3 billion) for the year ended March 31, 2025. Reliance’s activities include hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewables, retail, digital services, and media and entertainment.
Source: BSE
