ONGC, Reliance, and BP Launch Major Oil Exploration Agreement

Three major energy companies, Oil and Natural Gas Corporation Limited (ONGC), Reliance Industries Limited (RIL), and BP Exploration (Alpha) Ltd, have signed a significant Joint Operating Agreement (JOA) to explore oil and gas reserves in the offshore region of the Saurashtra Basin. This agreement, finalized on July 28, 2025, marks a critical step in the search for hydrocarbons in Block GS-OSHP-2022/2, awarded under India’s 9th round of the Open Acreage Licensing Policy (OALP).

The signing event took place in New Delhi at ONGC’s Deendayal Urja Bhawan, highlighting the collaborative effort among the three companies. The designated block spans approximately 5,454 square kilometers off the western coast of India, classified as a Category-II basin, indicating its promising potential for oil and gas discoveries.

As part of the agreement, ONGC will act as the operator of the block, leading the exploration activities aimed at identifying hydrocarbon reserves. The company will conduct geological surveys and drilling operations to evaluate the potential for future production. This initiative is seen as a vital component of India’s energy strategy, potentially enhancing the country’s self-sufficiency in oil and gas.

In a related development, ONGC has also approved a substantial investment of up to Rs. 5,082 crore for the Area 1 LNG project in Mozambique for the financial year 2026–27. This funding, communicated in a stock exchange filing last week, will be allocated through ONGC Videsh’s subsidiaries. ONGC Videsh holds a 16 percent stake in the Area 1 project, which is managed through its subsidiaries, ONGC Videsh Rovuma (OVRL) and Beas Rovuma Energy Mozambique (BREML).

The board’s approval of this funding is intended to cover estimated costs related to the Mozambique project. Specifically, BREML plans to invest Rs. 1,270.62 crore in 2025–26 and Rs. 635.31 crore in 2026–27. This investment demonstrates ONGC’s commitment to expanding its international presence and securing energy resources to meet growing domestic demand.

The collaborations between these prominent companies reflect a proactive approach to exploring and developing energy resources, which could significantly impact India’s energy landscape in the coming years. As exploration efforts commence in Saurashtra, stakeholders will be closely monitoring the progress and results of these initiatives.