Reliance, ONGC shares jump up to 8% on pact for deepwater resource sharing

Reliance Industries Ltd (RIL) and Oil and Natural Gas Corporation (ONGC) shares rose up to 8% on Wednesday's session (January 28), following the announcement that they entered into an agreement for resource sharing related to deepwater offshore exploration and production (E&P) activities along India's eastern coastline.

ONGC share price today was trading over 8% on BSE, while RIL share price today rose over 1%.

As per the filing, this arrangement will be especially focused on the Krishna Godavari basin and the Andaman offshore region. ONGC stated that this represents a significant advancement toward cost optimization, expedited execution, and enhanced asset utilization in complex deepwater initiatives.

ONGC stated that the agreement is in line with the initiative promoted by the Oilfields Amendment Act, 2025, introduced by the petroleum ministry, which establishes a clear framework for exploration and production operators to share infrastructure and facilities, both onshore and offshore, facilitating the development of oilfields and the production of hydrocarbons.

As part of this initiative from the ministry, ONGC and Reliance will work together to share essential resources needed for offshore operations, which may include onshore and offshore processing, facilities, drilling rigs, marine vessels, power sources, pipelines, logging, and well services, as indicated by the company.

ONGC stated that the agreement is anticipated to yield quantifiable advantages through a systematic framework for the collective use of essential assets and capabilities, including:

1. Cost reduction through the collaborative use of high-value rigs, vessels, logistics, and specialized subsea equipment.
2. Enhanced resource efficiency by minimizing duplication and idle capacity among operators.
3. Quicker mobilization and execution by enhancing access to the limited deepwater services that are available.
4. Greater operational resilience and preparedness for safety through shared emergency response and training capacities.

ONGC shares have been on the rise since the early hours of Wednesday, following an increase in crude oil prices to a four-month peak in global markets.

According to reports, brent crude has surged to nearly $68 per barrel, achieving a four-month high, spurred by a weakening US Dollar and heightened tensions regarding possible US military actions against Iran.

The rise in oil prices benefits upstream oil companies like ONGC and Oil India, as a one dollar increase in price can boost the annual revenue for each of these companies by ₹300 crore to ₹400 crore, according to reports.

Technical Views

ONCG share price opened at an intraday low of ₹249 apiece on the BSE, the stock touched an intraday high (52-week high) of ₹269.30 apiece.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that ONCG shares have witnessed a strong move, breaking out of a prolonged consolidation phase. In the near term, prices are likely to extend this up-move towards the 310 levels. On the downside, the breakout zone around 255 is expected to act as an immediate buying area and strong support.

Anshul Jain, Head of Research at Lakshmishree, added ONCG share price that has delivered a decisive breakout from a 63-week rectangle bounded by 215 and 254, confirming a higher-timeframe trend shift.

“Any shallow pullback toward the breakout area should act as support, while a sustained move back below 254 would be the key invalidation. Trend strength favors follow-through as long as participation remains elevated, ” said Jain.

RIL share price today opened at an intraday low of ₹1,383.30 apiece on the BSE, the stock touched an intraday high of ₹1,409.70 per share.

According to Rajesh Bhosale, RIL shares are currently hovering near the October swing low, a zone from where a strong rally was earlier witnessed. Some respite buying is visible, leading to a mild bounce.

“The 1,340–1,350 zone remains a crucial support. On the upside, the bounce may extend further, with the 200-DSMA around 1,440 acting as an immediate resistance,” said Bhosale.

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