India Energy Week 2026: ONGC, Reliance sign MoU to share deepwater offshore resources

State-owned Oil and Natural Gas Corporation (ONGC) and Reliance Industries have signed an agreement to share deepwater offshore resources on India’s east coast.

The two firms signed an MoU for resource-sharing collaboration on January 27 on the sidelines of India Energy Week (IEW).

The agreement will enable resource sharing for deepwater operations, particularly across the Krishna-Godavari basin and the Andaman offshore areas, the companies said on Tuesday.

The pact has been facilitated by the Oilfields (Regulation and Development) Amendment Act, 2025, which provides a clear regulatory framework for oil and gas operators to share infrastructure and facilities, both onshore and offshore, for more efficient development of hydrocarbon resources.

ONGC and Reliance will explore sharing of onshore and offshore processing facilities, drilling rigs, marine vessels such as multi-support vessels, tugs and platform supply vessels, power systems, pipelines, as well as logging and well services.

ONGC and Reliance have adjacent oil and gas fields for which they hire resources like offshore supply vessels (OSV). Presently, when one firm hires a foreign-flagged OSV, it seeks approvals for operations of such vessels from multiple authorities, including ministries of defence and home affairs and director general of shipping.

These approvals take 45 days and are specific for operation in a particular area and during a specified duration. The other company has to seek all these approvals again for use of the same OSV after it is dehired by the first.

The companies said the agreement is expected to deliver tangible benefits through a structured framework for pooling critical assets and capabilities.

Since oil and gas operations of the two companies are complimentary, it makes more sense to share resources, ONGC Director (Production) Pankaj Kumar said.

The OSV should be able to move from one block or area to another without having to go through the time-consuming exercise of de-hiring and approvals.

"The idea is that if the OSV and its crew have got approvals from all authorities, it should be able to move from one area to another depending on requirement," Kumar said.

The arrangement is also expected to enhance operational resilience and safety preparedness through shared emergency response mechanisms and training capabilities.

After the MoU, the two companies will make a plea to the government for allowing use of any vessel that has received all necessary approvals anywhere in the Indian sedimentary basin.