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

Election 2014

REUTERS SHOWCASE

TCS Results

TCS Results

TCS net profit rises 51.5 percent, sees stronger sales growth.  Full Article | Quote 

Election 2014

Election 2014

Promises and more promises: India’s parties pitch their visions.  Full Article | Full Coverage 

India Markets

India Markets

Sensex slumps 207 points, at 2-1/2 week closing low.  Full Article 

Telecom Sector

Telecom Sector

RComm to raise mobile call tariff by up to 20 percent  Full Article 

Chinese Economy

Chinese Economy

China economic growth slows to 18-month low in first quarter  Full Article 

New Direction

New Direction

CEO Nadella pushes data culture at Microsoft.  Full Article 

Bitcoin ATM

Bitcoin ATM

China gets first bitcoin ATM, skirting bank crackdown.  Full Article 

Strong Sales Volume

Strong Sales Volume

Small is beautiful for Coca-Cola as volumes soar in China  Full Article 

Breakingviews

Breakingviews

Diageo throws money at Indian empire-building  Full Article 

Reuters India Mobile

Reuters India Mobile

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