Reliance Industries and ONGC signed a resource-sharing agreement to jointly use offshore infrastructure for deepwater oil and gas projects on India’s East Coast.
The pact allows sharing of rigs, vessels, processing facilities and other critical assets to cut costs and speed up execution in the KG basin and Andaman offshore.
The collaboration supports the government’s energy security push by improving asset utilisation and safety readiness.
Reliance, ONGC Team Up to Cut Costs and Speed Up Offshore Oil Projects
As per the agreement, Reliance and ONGC will explore sharing resources across major offshore regions, particularly the Krishna Godavari (KG) basin and the Andaman offshore area
Reliance, ONGC Team Up to Cut Costs and Speed Up Offshore Oil Projects ONGC
Summary
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Reliance Industries and state-owned Oil and Natural Gas Corporation (ONGC) have entered into a strategic agreement to share key resources for deepwater oil and gas exploration and production along India’s East Coast. The agreement was signed on January 27 and is aimed at cutting costs, speeding up project execution, and making better use of expensive offshore infrastructure, according to a joint official statement.
The pact has been facilitated under the Oilfields (Regulation and Development) Amendment (ORDA) Act, 2025, introduced by the Ministry of Petroleum and Natural Gas (MoPNG). The new law provides a clear regulatory framework that allows energy companies to share infrastructure and facilities, both onshore and offshore, to improve efficiency in oil and gas development.
As per the agreement, Reliance and ONGC will explore sharing resources across major offshore regions, particularly the Krishna Godavari (KG) basin and the Andaman offshore area. These regions are known for complex deepwater operations that require advanced technology, specialised equipment, and significant capital investment.
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Under the MoPNG-backed initiative, the two companies are expected to jointly use critical offshore and onshore assets such as processing facilities, drilling rigs, marine vessels, power infrastructure, pipelines, and specialised well-logging and subsea services. The collaboration is expected to reduce duplication of infrastructure and avoid situations where costly equipment remains underutilised.
ONGC said the agreement is designed to deliver measurable benefits through a structured framework for pooling high-value assets. Sharing drilling rigs, vessels, logistics networks, and subsea equipment is expected to significantly lower operational costs, particularly in deepwater projects where expenses are typically high.
The company also highlighted that improved access to limited deepwater services would help speed up mobilisation and execution of projects. In addition, shared emergency response systems and joint training capabilities are expected to strengthen operational safety and resilience in challenging offshore environments.
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The agreement also aligns with the government's broader push to strengthen energy security by boosting domestic oil and gas production. By encouraging infrastructure sharing, regulatory reforms aim to lower development costs, accelerate production timelines, and reduce India’s dependence on imported hydrocarbons.
With India’s largest oil and gas producer and its most valuable company joining forces, the collaboration may set a precedent for future partnerships in the country’s energy sector, particularly in technically challenging offshore projects.