Shares of Oil and Natural Gas Corporation (ONGC) Ltd. gained nearly 8% on Wednesday, January 28, after the company informed the stock exchanges that it has signed an agreement with Reliance Industries Ltd. (RIL) for resource sharing for deepwater offshore exploration and production (E&P) operations on India’s east coast.The same will be particularly across the Krishna Godavari basin and Adaman offshore. This marks a major step towards cost optimisation, faster execution and improved asset utilisation in complex deepwater projects, ONGC said in a statement.
ONGC said the agreement is aligned with the initiative facilitated by the Oilfields Amendment Act, 2025, introduced by the petroleum ministry, which creates a clear enabling framework for E&P operators to share infrastructure and facilities, both onland and offshore, for more convenient development of oilfields and production of hydrocarbons.
Under the ministry’s initiative, ONGC and Reliance will pursue sharing of key resources required for offshore operations, which may include onshore and offshore processing, facilities, drilling rigs, marine vessels, power, pipelines, logging and well services, etc., the company said.ONGC added that the agreement is expected to deliver measurable benefits via a structured framework for pooling critical assets and capabilities, including:

Cost optimisation through shared use of high-value rigs, vessels, logistics and specialised subsea equipment.

Improved resource utilisation by reducing duplication and idle capacity across operators.

Faster mobiliation and execution by improving access to the limited deepwater services available.

Stronger operational resilience and safety readiness via shared emergy response and training capabilities.

Shares of ONGC are also trading higher supported by rising crude oil prices. You can read more details on that here.Shares of ONGC were up 7.6%, while RIL shares were up 1.4% around 12.10 pm on Wednesday.

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ONGC shares surge 8% on agreement with Reliance Industries for deepwater resource sharing

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