ONGC Share Price Rises Over 8% After Signing Deal with Reliance to Share Deepwater Resources

Oil and Natural Gas Corporation (ONGC) and Reliance Industries have signed a landmark agreement to share resources for deepwater oil and gas exploration and production on India’s East Coast.

The agreement was signed on January 27, 2026, and focuses mainly on projects in the Krishna Godavari (KG) basin and Andaman offshore areas.

Enabled by New Government Framework

The partnership is supported by the Oilfields (Regulation and Development) Amendment Act, 2025, introduced by the Ministry of Petroleum and Natural Gas. The new law allows oil and gas companies to share infrastructure and facilities, both onshore and offshore, to improve efficiency and speed up development.

Resources to Be Shared

Under this arrangement, ONGC and Reliance may jointly use several key offshore assets, including:

• Onshore and offshore processing facilities
• Drilling rigs
• Marine vessels such as tugs and supply vessels
• Power systems and pipelines
• Logging, well and other technical services

Key Benefits of the Agreement

The agreement is expected to deliver multiple benefits:

• Lower costs through shared use of expensive equipment and vessels
• Better asset utilisation by reducing duplication and idle capacity
• Faster project execution due to easier access to limited deepwater services
• Improved safety and emergency response through shared training and preparedness

Boost to Energy Security

The collaboration supports the government’s push to strengthen India’s energy security by increasing domestic oil and gas production through industry cooperation and efficient use of infrastructure.

About the Companies

ONGC is India’s largest producer of crude oil and natural gas and a Maharatna public sector company, playing a key role in national energy security.

Reliance Industries is India’s largest private sector company, with businesses spanning energy, petrochemicals, renewables, retail, digital services, and media.

Read More: Best Monopoly Stocks in January 2026: HAL, CDSL, IRCTC and More Based on 5-yr CAGR Basis.

ONGC Share Price Movement

ONGC share price (NSE: ONGC) surged over 8% to ₹267.95 in afternoon trade on January 28 after opening at ₹249.20. The stock touched an intraday high of ₹268.20, which is also its 52-week high, while the day’s low stood at ₹249.20. The company offers a dividend yield of about 4.6%, with a quarterly dividend of ₹3.06 per share, and has a 52-week low of ₹205.

Conclusion

The ONGC–Reliance agreement marks a major step in collaborative deepwater exploration in India. By sharing critical resources, both companies aim to reduce costs, speed up execution, and support the country’s long-term energy security goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.