In a strategic move to enhance offshore energy exploration and operational efficiency, Oil and Natural Gas Corporation Ltd (ONGC) and Reliance Industries Ltd have signed a memorandum of understanding (MoU) to share key offshore resources, including supply vessels used in oil and gas exploration and production.
The agreement was signed on the sidelines of India Energy Week (IEW), ONGC Director (Production) Pankaj Kumar said.
The collaboration aims to improve operational efficiency, accelerate execution of offshore projects, and create stronger synergies between India’s largest oil and gas producer and the country’s most valuable company, particularly in areas where their offshore fields and operations are adjacent, notably off the east coast.
Under the MoU, ONGC and Reliance will explore opportunities to jointly utilise offshore resources, infrastructure, and technical capabilities. This is expected to reduce duplication of efforts, optimise capital deployment, and support timely development of offshore assets—critical to meeting India’s rising energy demand.
This marks the second major collaboration between the two companies in recent years. In 2024, ONGC, Reliance, and BP jointly bid for offshore Block GS-OSHP-2022/2, a 5,454-sq-km tract in the Saurashtra Basin, under Open Acreage Licensing Policy (OALP) Round IX. The Category-II basin is considered to have significant exploratory potential, with the partners jointly evaluating its hydrocarbon prospects.
Industry analysts view the latest agreement as part of a broader push by the government to attract investment, share exploration risks, and strengthen energy security through collaborative models—especially as offshore resources play an increasingly important role in domestic supply.
ONGC and Reliance operate adjacent offshore oil and gas fields and often hire offshore supply vessels (OSVs) for their operations. Currently, when one company hires a foreign-flagged OSV, it must secure approvals from multiple authorities, including the Ministries of Defence and Home Affairs and the Directorate General of Shipping. These approvals, which can take up to 45 days, are limited to a specific area and time period. Once the vessel is de-hired, the other company must repeat the entire approval process to use the same OSV.
Kumar said the companies’ offshore operations are complementary, making resource sharing a logical step. “If an OSV and its crew have received all the necessary approvals, it should be able to move from one block or area to another depending on operational requirements, without going through the time-consuming process of de-hiring and re-approval,” he said.
For instance, an OSV deployed by ONGC at its KG-DWN-98/2 block in the Krishna Godavari Basin could, upon completion of work, move directly to the adjacent KG-DWN-98/3 block operated by Reliance-BP, or vice versa.
Following the MoU, the two companies plan to approach the government seeking permission for vessels that have obtained all statutory clearances to operate across any Indian sedimentary basin.
Industry observers say the collaboration marks an important milestone in India’s offshore energy journey, signalling a shift toward cooperative models that enhance efficiency, strengthen domestic energy production, and improve resilience against global supply disruptions.
