Betul: State-run Oil and Natural Gas Corp (ONGC) and Reliance Industries have agreed to share resources for upstream operations in India’s eastern offshore.
The two companies will share key resources required for offshore operations, particularly across the Krishna Godavari (KG) basin and the Andaman offshore, ONGC said in a statement. The scope of sharing may include, but is not limited to, onshore and offshore processing facilities, as well as other critical infrastructure.
The resource-sharing arrangement is “a major step towards cost optimisation, faster execution, and improved asset utilisation in complex deepwater projects,” the state-run company said. ONGC operates a producing block in the KG basin that is adjacent to a block operated by Reliance.
The agreement is expected to deliver cost optimisation through the shared use of high-value rigs, vessels, logistics and specialised subsea equipment, the company said. It is also expected to improve resource utilisation by reducing duplication and idle capacity across operators, while enabling faster mobilisation and execution by improving access to the limited deepwater services available. In addition, the arrangement is expected to strengthen operational resilience and safety preparedness through shared emergency response and training capabilities.
Deepwater projects are resource-intensive and highly dependent on weather cycles. The deployment of rigs, equipment and specialised services also requires multiple regulatory clearances, which can be streamlined through resource sharing.
