Oil India Limited (OIL) and GAIL India Limited (GAIL) have signed a Memorandum of Understanding (MoU) to strengthen collaboration across the natural gas value chain, aimed at expanding cleaner energy access and supporting India’s energy transition.

The agreement was signed by the Director (Marketing), GAIL, and Director (Operations), OIL, in the presence of senior officials from the Ministry of Petroleum & Natural Gas (MoPNG), including the Secretary, Additional Secretary and Joint Secretary, along with the CMDs of both companies.

The MoPNG Secretary described the partnership as a timely step to enhance domestic gas availability and ensure reliable access to demand centres nationwide. He said such collaborations are vital to achieving the Government’s goal of a gas-based economy.

CMD, GAIL, said the partnership would strengthen energy security, widen natural gas access, and accelerate the shift to cleaner energy. CMD, OIL, noted that the MoU would leverage OIL’s upstream capabilities with GAIL’s marketing and distribution expertise to create value while supporting the transition to a gas-based economy.

Separately, Oil India last week confirmed the presence of natural gas in its second exploratory well, Vijayapuram-2, in the Andaman Shallow Offshore Block under the Open Acreage Licensing Policy. Preliminary testing indicated natural gas inflows, with isotope studies under way to evaluate its hydrocarbon potential.

Ahead of the announcement, Oil India’s shares closed at Rs 414.00, down 0.78 per cent on the NSE.