Oil & Natural Gas Corporation Ltd.

Oil and Natural Gas Corporation (ONGC) is reportedly in talks with Reliance Industries (RIL) to ink a deal for sharing infrastructure at the Krishna-Godavari (KG) basin. ONGC is seeking to share RIL’s gas processing and transportation facilities for the KG basin, which includes RIL’s underutilised gas gathering station at KG-D6 along with pipelines that transport the fuel on to the land, and the processing plant at Kakinada in Andhra Pradesh.

The state-run explorer, which has lined up a capital expenditure of around Rs 51,500 crore or close to $9 billion for the block by 2030, could save as much as $4-5 billion in capital expenditure if the deal materializes.

Further, the company is planning to hire a consultant for working out the modalities on how the resources can be shared. Some of the international consultants the company could consider include Aker, Technip and GE.

ONGC, so far, has made nine gas discoveries in its KG block called KG-DWN-98/2, which sits next to RIL’s KG-D6 block.