Reliance, ONGC to work out sharing infrastructure in KG basin

MUMBAI Sun Jul 28, 2013 11:55am IST

Reliance Industries KG-D6's facility located in Andhra Pradesh is pictured in this undated handout photo. REUTERS/Reliance Industries/Handout/Files

Reliance Industries KG-D6's facility located in Andhra Pradesh is pictured in this undated handout photo.

Credit: Reuters/Reliance Industries/Handout/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - Energy major Reliance Industries Ltd(RELI.NS) and state-run exploration firm Oil and Natural Gas Corp(ONGC.NS) have signed an initial agreement to consider sharing Reliance's offshore infrastructure at the KG basin, off India's east coast.

Reliance and ONGC will conduct a joint study over the next nine months to work out a formal agreement and firm up commercial terms, the two companies said late on Saturday.

Reliance, controlled by billionaire Mukesh Ambani, operates India's largest offshore gas field but has struggled with a slump in gas production over the past two years. It is estimated to have spent close to $8 billion to develop its blocks in the Krishna Godavari (KG) basin.

ONGC, which has also struggled to maintain production from its aging wells off India's west coast, hopes to produce from six to nine million standard cubic metres per day (mscmd) of gas by 2017 from its offshore east coast blocks, adjacent to Reliance's blocks there.

The agreement will minimise ONGC's initial capital expenditure and help in early monetisation of its deep water fields, ONGC Chairman Sudhir Vasudeva said in a statement.

(Reporting by Prashant Mehra; Editing by Robert Birsel)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Fuelling Change

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Earnings Season

Earnings Season

HDFC Bank eyes pickup in corporate credit.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

Iron Ore Imports

Iron Ore Imports

JSW Steel to boost iron ore imports by up to 80 percent.  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Remembering Margerie

Remembering Margerie

Total’s "Big Moustache"- bon vivant, deal-maker and risk-taker .  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage