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ONGC & Reliance Ink Historic Deepwater Resource Sharing Pact on East Coast

ONGC and Reliance Industries have signed a landmark agreement to share deepwater resources on India's East Coast during India Energy Week 2026. The pact, facilitated by the ORDA Act 2025, will enable the sharing of critical offshore infrastructure like drilling rigs, vessels, and processing facilities. This collaboration aims to optimize costs, reduce duplication, and accelerate project execution in complex deepwater zones like the Krishna Godavari basin. The move is aligned with the government's push for energy security through enhanced domestic production and efficient resource utilization.

Key Points: ONGC, Reliance Sign Deepwater Resource Sharing Agreement

  • Cost optimization in deepwater projects
  • Faster project execution via shared assets
  • Improved operational resilience and safety
  • Enabled by ORDA Act 2025 regulatory framework
2 min read

ONGC, Reliance sign agreement to share deepwater resources on India's East Coast

ONGC and Reliance Industries sign a major agreement to share offshore infrastructure in the Krishna Godavari basin, boosting India's energy security.

"The agreement reflects the Government of India's emphasis on energy security through scaled domestic exploration and production - Joint Statement"

Panjim, January 28

Oil and Natural Gas Corporation Limited and Reliance Industries Limited signed a path-breaking agreement during the ongoing India Energy Week 2026 to enable resource sharing for deepwater offshore exploration and production operations on India's East Coast, particularly across the Krishna Godavari basin and Andaman offshore.

This marks a major step towards cost optimisation, faster execution, and improved asset utilisation in complex deepwater projects, according to a joint statement on Wednesday.

This agreement is aligned with a forward-looking initiative facilitated by the Oilfields (Regulation and Development) Amendment Act, 2025 (ORDA Act 2025), introduced by the Ministry of Petroleum and Natural Gas (MoPNG), which creates a clear enabling framework for E&P operators to share infrastructure and facilities, both onland and offshore, for more efficient development of oilfields and production of hydrocarbons.

Under MoPNG's enabling initiative, 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.

The agreement is expected to deliver measurable benefits through a structured framework for pooling critical assets and capabilities, including cost optimisation through shared use of high-value rigs, vessels, logistics and specialised subsea equipment.

It is expected to improve 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.

"The agreement reflects the Government of India's emphasis on energy security through scaled domestic exploration and production, enabled by progressive regulation, streamlined infrastructure utilization, and industry collaboration," the joint statement said.

- ANI

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Reader Comments

S
Sarah B
As someone working in the energy sector, the ORDA Act 2025 was a much-needed reform. Sharing high-cost infrastructure like deepwater rigs and vessels makes perfect economic sense. This should become a model for other basins too.
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Priyanka N
Hope this leads to more jobs and skill development in Andhra Pradesh and Odisha coastal regions. The focus on shared emergency response is also very important for safety. Good step forward!
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Rahul R
While collaboration is good, I hope this doesn't lead to a monopoly-like situation or reduce competitive pricing in the long run. The government must ensure transparent oversight so that the benefits truly reach the public exchequer.
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Aryan P
Reducing duplication of assets is a smart way to cut costs. Every rupee saved in exploration can be used to keep fuel prices in check. Let's hope this partnership delivers on its promises quickly.
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Meera T
The environmental impact of deepwater drilling in the KG basin and near the Andamans needs careful, independent monitoring. Efficiency shouldn't come at the cost of our marine ecosystems. Hope they have robust plans for that too.

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