In a move that may open up new opportunities in India’s quest of energy security, Reliance Industries Ltd (RIL) has inked a Memorandum of Understanding with the Oil and Natural Gas Corporation (ONGC) to explore the possibility of sharing RIL’s infrastructural facility in the East Coast.
In line with global practice of sharing infrastructure, the MoU aims at working out the modalities for sharing of infrastructure, identifying additional requirements as well as firming up the commercial terms.
“This shall not only minimize ONGC’s initial Capex but also expedite its field development resulting in early monetization of its deep water fields adjacent to the fields of RIL. The companies intend to enter into a definitive agreement after conducting a joint study which will be spread over the next nine months.” said RIL in a statement.
The MoU was signed by Naresh K Narang, Sr. Vice President, Development Projects, Petroleum E&P, RIL and Ashok Varma, Executive Director, Asset Manager Eastern Offshore Asset, ONGC in the presence of P.M. S Prasad, Executive Director, RIL and Sudhir Vasudeva, Chairman & Managing Director, P.K. Borthakur, Director (Offshore) and N K Verma, Director (Exploration) from ONGC.
Sudhir Vasudeva said that it is a win – win situation not only for both the companies which are striving hard to accrete new reserves and put them on production in the quickest time but also for energy starved nation. Mr. Vasudeva and Mr. Prasad agreed that today’s MoU is just the beginning and a herculean task of development still lies ahead of both the companies.