ONGC, RIL to Share Infrastructures in Gas Rich KG Basin

India’s state owned Oil and Natural Gas Corporation (ONGC) has inked a Memorandum of Understanding with the Reliance Industries Ltd (RIL) to explore the possibility of sharing the latter’s infrastructural facility in gas rich KG Basin offshore east coast of the country.

The MoU aims at working out the modalities for sharing of infrastructure, identifying additional requirements as well as firming up the commercial terms, ONGC said in a statement.

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.

ONGC has plans to produce about 6 to 9 MMSCMD of gas by mid-2017 from G-4, KG-DWN - D & E fields in the first phase.

The companies intend to enter into a formal agreement after conducting a joint study which will be spread over the next nine months.