In a move aimed at improving efficiency in offshore oil and gas operations, Oil and Natural Gas Corporation (ONGC) and Reliance Industries have signed a memorandum of understanding (MoU) to share offshore resources, including supply vessels used for exploration and production activities.
The agreement was signed on the sidelines of India Energy Week (IEW), ONGC Director (Production) Pankaj Kumar said, adding that the collaboration is expected to speed up project execution and optimise capital deployment, particularly in offshore areas where the two companies operate in close proximity.
Focus on Operational Efficiency
The MoU seeks to enable joint utilisation of vessels, infrastructure and technical capabilities across offshore operations. By sharing assets such as offshore supply vessels (OSVs), the companies aim to reduce duplication of effort, cut downtime and improve overall operational efficiency.
ONGC and Reliance operate adjacent offshore oil and gas fields, especially off India’s east coast. Currently, when a foreign flagged OSV is hired, companies must obtain multiple approvals from the ministries of defence and home affairs, and the Directorate General of Shipping a process that can take up to 45 days and is limited to a specific block and time period.
Under the proposed framework, vessels that have already received all regulatory approvals could be redeployed between adjacent blocks without undergoing the full de-hiring and re-approval cycle.
Complementary Operations
Kumar said the collaboration makes sense given the complementary nature of ONGC’s and Reliance’s offshore activities.
“The idea is that once a vessel and its crew have received all necessary approvals, it should be able to move from one operational area to another based on requirement,” he said, citing examples from the Krishna Godavari basin, where ONGC and the Reliance-BP consortium operate neighbouring blocks.
Following the MoU, the two companies plan to approach the government to allow approved vessels to operate seamlessly across the Indian sedimentary basin.
Not the First Collaboration
This marks the second major collaboration between ONGC and Reliance in recent years. In 2024, ONGC, Reliance and BP jointly bid for an offshore block in the Saurashtra Basin under the Open Acreage Licensing Policy (OALP) Round IX, a block considered to have significant exploration potential.
Strategic Significance
Industry analysts say the agreement aligns with New Delhi’s broader push to encourage collaboration, reduce risk and strengthen energy security, particularly as offshore resources become increasingly important for meeting domestic demand.
The pact is seen as a shift towards cooperative operating models in India’s offshore energy sector balancing efficiency, regulatory reform and long-term strategic interests amid global supply uncertainties.
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