Oil and Natural Gas Corporation Limited and Reliance Industries Limited recently signed a landmark agreement to enable resource sharing for deepwater offshore exploration and production operations along India’s East Coast. The collaboration will primarily cover assets in the Krishna Godavari Basin and the Andaman offshore region, aimed at improving cost efficiency, execution timelines, and utilisation of critical infrastructure in complex deepwater projects.

The agreement aligns with the Oilfields (Regulation and Development) Amendment Act, 2025, facilitated by the Ministry of Petroleum and Natural Gas (MoPNG), which provides a clear regulatory framework for sharing onshore and offshore infrastructure among E&P operators. This policy initiative supports collaborative development of oilfields and optimised hydrocarbon production.

Under the arrangement, the two companies will explore shared use of key offshore resources, including processing facilities, drilling rigs, marine support vessels, power systems, pipelines, and specialised logging and well services.

The structured framework is expected to deliver tangible benefits such as reduced capital and operating costs through shared high-value assets, improved utilisation by minimising duplication, faster mobilisation of limited deepwater services, and enhanced safety through shared emergency response and training capabilities.

The agreement reflects the Government of India’s broader focus on strengthening energy security through increased domestic exploration and production, supported by progressive regulation and industry collaboration.