Reliance Industries Ltd. (RIL) has signed an agreement with the government-run Oil and Natural Gas Corporation (ONGC) to explore the possibility of sharing RIL's infrastructural facility in the east coast, the two companies said.
The two companies have signed a Memorandum of Understanding (MoU) aimed at "working out the modalities for sharing of infrastructure, identifying additional requirements as well as firming up the commercial terms," RIL said in a statement released late Saturday.
"This shall not only minimise ONGC's initial capex but also expedite its field development resulting in early monetisation of its deep water fields adjacent to the fields of RIL," it said.
"The companies intend to enter into a definitive agreement after conducting a joint study which will be spread over the next nine months," it added.
Sudhir Vasudeva, chairman and managing director of ONGC, said in the statement that the deal would be a "win-win" situation for both the companies and help in India's quest of energy security.
