Shares of Oil and Natural Gas Corporation Ltd (ONGC) skyrocketed 8% on 28 January after the company announced signing a resource sharing agreement with Reliance Industries Ltd. (RIL) for deepwater offshore exploration and production (E&P) operations on India’s east coast.

The same will be true for the Krishna Godavari basin and Adaman offshore. According to ONGC, this is a significant step towards cost optimisation, speedier execution, and increased asset utilisation in complicated deepwater projects.

The agreement, according to ONGC, is in line with the initiative facilitated by the Petroleum Ministry’s Oilfields Amendment Act, 2025, which establishes a clear enabling framework for E&P operators to share infrastructure and facilities, both onland and offshore, for more convenient oilfield development and hydrocarbon production.

Under the ministry’s plan, ONGC and Reliance would work together to share critical resources for offshore operations, such as onshore and offshore processing, facilities, drilling rigs, marine vessels, electricity, pipelines, logging and well services, and so on, according to the corporation.

ONGC further stated that the partnership is projected to generate measurable benefits through a defined framework for pooling important assets and capabilities, including:

• -Cost savings can be achieved by sharing high-value rigs, vessels, logistics, and specialised subsea equipment.
• Increased resource use by minimising duplication and idle capacity across operators.
• Improved access to limited deepwater services allows for faster mobilisation and execution.
• Increased operational resilience and safety readiness through collaborative emergency response and training capabilities.

At 2:30 pm, the shares of ONGC were trading 7.77% higher at Rs 267.24 on NSE. 

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