Reliance Industries and Oil and Natural Gas Corporation (ONGC) announced a major agreement for oil and gas exploration and production in deep-sea blocks off the country’s eastern coast, and investors responded swiftly.
Following the announcement, shares of both companies witnessed an upward trend. Reliance Industries Ltd rose by over 1 per cent, while ONGC saw a sharp rally, with its stock jumping more than 8 per cent at one point during the trading session.
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Reliance-ONGC agreement
According to company sources, Reliance and ONGC have reached an agreement on resource sharing, or infrastructure sharing, for deep-sea offshore oil and gas projects. The primary objective of this collaboration is to explore natural resources in key regions off India’s eastern coast, including the Krishna-Godavari basin and the Andaman offshore area.
ONGC stated that the agreement will help reduce costs in deep-sea projects, speed up operations, and allow better utilisation of existing resources. The company described the move as a significant step forward, particularly for complex deepwater projects.
Alignment with new law and market impact
ONGC also said the agreement aligns with the Oilfields (Amendment) Act, 2025, introduced by the Ministry of Petroleum. The law, for the first time, allows oil and gas exploration companies to share infrastructure and facilities in both onshore and offshore areas. Its objective is to accelerate oilfield development, cut unnecessary costs, and increase hydrocarbon production.
According to ONGC, several key resources will be shared under the agreement. These include onshore and offshore processing facilities, drilling rigs, marine vessels, power supply systems, pipelines, and logging and well services. Experts believe that joint use of such infrastructure, rather than developing it separately, will significantly improve project viability.
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Market experts say the agreement is especially important for ONGC, as deep-sea projects involve very high costs and risks. Infrastructure sharing with Reliance is expected to reduce those risks substantially. At the same time, Reliance will strengthen its offshore presence along the eastern coast through this arrangement. In the long run, the collaboration is expected to support higher domestic oil and gas production, which is why the market has reacted positively to the announcement.
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