ONGC, Reliance sign MoU to share offshore resources, boost India’s energy efficiency

State-run Oil and Natural Gas Corporation Ltd (ONGC) and Reliance Industries Ltd have signed a memorandum of understanding (MoU) to share offshore resources , including supply vessels, in a move aimed at improving operational efficiency, reducing costs and accelerating offshore oil and gas projects.

The agreement was signed on the sidelines of the India Energy Week (IEW), ONGC Director (Production) Pankaj Kumar said. The collaboration seeks to enable joint utilisation of resources, infrastructure and technical capabilities across offshore exploration and production activities, particularly in areas where the two companies have adjacent fields.

Kumar said the pact would help avoid duplication of efforts, optimize capital deployment and support timely development of offshore assets, which are critical to meeting India’s growing energy demand . ONGC is India’s largest oil and gas producer, while Reliance is the country’s most valuable company, with significant offshore operations, especially off the east coast.

A key focus of the MoU is the sharing of offshore supply vessels (OSVs) , which are hired to transport equipment, personnel and supplies to offshore installations. At present, when a company hires a foreign-flagged OSV, it must secure approvals from multiple authorities, including the ministries of defence and home affairs and the Directorate General of Shipping. These clearances, which are valid only for specific areas and time periods, typically take about 45 days .

When the same vessel is later required by another company or for a different block, the entire approval process has to be repeated. Under the MoU, ONGC and Reliance plan to approach the government to allow any OSV that has obtained all mandatory approvals to operate across Indian sedimentary basins without fresh clearances for each block.

“The idea is that if an OSV and its crew have received all approvals, it should be able to move from one block to another depending on operational requirements,” Kumar said, citing examples from adjacent blocks in the Krishna Godavari basin .

This marks the second collaboration between the two companies in recent years. In 2024, ONGC, Reliance and BP jointly bid for the GS-OSHP-2022/2 block in the Saurashtra Basin under the Open Acreage Licensing Policy (OALP) Round IX.

Industry analysts said the agreement reflects a broader push by the government to encourage collaboration, share risks and strengthen India’s energy security , as offshore resources assume greater importance in meeting domestic supply needs.