Reliance Industries signs pact with ONGC for sharing offshore resources
- IBEF
- January 29, 2026
Reliance Industries Limited (RIL) and Oil and Natural Gas Corporation (ONGC) have reached an agreement to share offshore assets and infrastructure with the purpose of improving the energy security of India. The signing occurred on the sidelines of the India Energy Week (IEW) 2026 event being held in Goa. The intention behind establishing this type of agreement was to create operational efficiencies for both parties to share in the accelerated development of hydrocarbon resources, particularly between the complex and capital-intensive Krishna Godavari (KG) Basin and Andaman offshore regions. This partnership is made possible through the Oilfields (Regulation and Development) Amendment Act, 2025, which establishes a regulatory environment for operators to co-locate facilities, allowing them to optimise production levels. In the future, the parties will jointly explore high-value assets, such as drilling platforms, marine vessels including Offshore Supply Vessels (OSVs), Multipurpose Support Vessels (MSVs), and tugs, as well as onshore or offshore processing facilities, pipelines, power systems, and specialised logging and well services.
The objective of this collaboration is to increase real advantages through the reduction of duplicate work and the reduction of available resources, leading to a major reduction in capital and operating expenses. The Director of Production at ONGC, Mr. Pankaj Kumar, noted the enormous benefit of being able to share resources such as OSVs, since both companies have adjacent blocks. This resource-sharing enables the vessels to move through the blocks without going through many time-consuming regulatory processes that can take up to 45 days. In addition to cost savings, the agreement will enable greater operational resilience through joint emergency response and training capabilities. Industry analysts consider the partnership between India's largest public sector producer and its most successful private sector energy company to be a sound business model for enhancing domestic production and building up a greater level of responsiveness to global supply chain disruptions.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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