Energy Trifecta: ONGC, BP, Reliance Dive Deep into Saurashtra’s Promising Basin

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In a landmark move to accelerate India’s offshore energy ambitions, Oil and Natural Gas Corporation Ltd (ONGC), BP Exploration (Alpha) Ltd, and Reliance Industries Ltd (RIL) have signed a Joint Operating Agreement (JOA) for the exploration of Block GS-OSHP-2022/2 in the Saurashtra Basin. The agreement, formalized on July 28, 2025, at ONGC’s Deendayal Urja Bhavan in New Delhi, designates ONGC as the operator for the block, marking a significant milestone in collaborative hydrocarbon exploration under the Open Acreage Licensing Policy (OALP) Bid Round IX.

Key Developments:

1. Consortium Composition and Roles:

ONGC holds a 40 percent stake and will serve as the designated operator.
Reliance Industries and BP each hold 30 percent stakes.
The tripartite agreement reflects a strategic alignment of domestic and global energy expertise.

2. Block Details and Strategic Importance:

Block GS-OSHP-2022/2 spans approximately 5,454 square kilometers.
Located off the western coast in the Saurashtra Basin, the block falls under Category-II sedimentary basins.
The region is considered moderately prospective, with untapped hydrocarbon potential.

3. Exploration Objectives and Scope:

The consortium will initiate seismic surveys and geological assessments to evaluate resource viability.
Exploration activities will focus on identifying commercially recoverable oil and gas reserves.
The project aligns with India’s broader energy security goals and upstream expansion strategy.

4. Policy Framework and Licensing Context:

The block was awarded under OALP Bid Round IX, part of India’s Hydrocarbon Exploration and Licensing Policy (HELP).
OALP-IX offered 28 blocks across 1.37 lakh sq km, with ONGC emerging as the top bidder, securing 15 blocks.
The licensing framework promotes ease of doing business and encourages public-private partnerships.

5. Leadership Presence and Strategic Messaging:

The signing ceremony was attended by senior executives including:
Mr. Arunangshu Sarkar, Director (Strategy & Corporate Affairs), ONGC
Mr. Om Prakash Sinha, Director (Exploration), ONGC
Mr. Manoj Kumar, Director (Finance), BP Exploration (Alpha) Ltd
Mr. Avinash Kumar Pathak, Senior Vice President, Reliance Industries Ltd
The leadership emphasized operational synergy, technological integration, and long-term energy sustainability.

6. Market Reaction and Investor Sentiment:

ONGC shares closed at ₹240.10 on the BSE, marginally down by ₹0.10 or 0.042 percent.
Analysts view the pact as a positive signal for ONGC’s offshore portfolio diversification and Reliance’s upstream re-engagement.

7. Historical Context and Industry Dynamics:

This collaboration marks a notable shift, especially given ONGC’s past legal dispute with Reliance over gas migration in the KG Basin.
The renewed partnership underscores a pragmatic approach to energy exploration amid rising global demand and geopolitical shifts.

8. Future Outlook and Strategic Implications:

The consortium’s success could unlock further investment in offshore infrastructure and exploration technologies.
It sets a precedent for multi-entity cooperation in India’s upstream sector, potentially influencing future OALP rounds.
The project is expected to contribute to domestic production and reduce import dependency over the next decade.

Conclusion:

The ONGC-RIL-BP joint operating agreement for the Saurashtra Basin is more than a contractual milestone—it’s a strategic pivot in India’s energy narrative. With ONGC at the helm and global expertise backing the initiative, the consortium is poised to redefine offshore exploration standards. As India intensifies its pursuit of energy self-reliance, this alliance could serve as a blueprint for future collaborations in the sector.

Source: CNBC-TV18, July 28, 2025