ONGC, Shell Energy India Sign MoU on Deepwater, LNG Plans

ONGC and Shell Energy India have signed a non-binding MoU to explore deepwater and ultra-deepwater oil and gas opportunities and LNG sourcing. The partnership covers OALP blocks, farm-in and farm-out opportunities, and potential gas supply cooperation.

State-run Oil and Natural Gas Corporation (ONGC) and Shell Energy India have signed a non-binding Memorandum of Understanding (MoU) to explore opportunities in deepwater and ultra-deepwater oil and gas exploration, along with potential liquefied natural gas (LNG) sourcing. The agreement was signed on August 10, 2026, as India seeks to expand domestic hydrocarbon exploration and strengthen energy security.

Under the proposed cooperation, ONGC and Shell Energy India will examine opportunities to jointly participate in deepwater and ultra-deepwater offshore blocks offered under the government's Open Acreage Licensing Policy (OALP). The companies will also assess opportunities in upcoming OALP bidding rounds and explore potential farm-in and farm-out arrangements involving existing ONGC blocks.

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The collaboration is expected to cover OALP Rounds X and XI under the broader Samudra Manthan initiative. Farm-in and farm-out arrangements could allow the companies to evaluate participation in existing exploration assets, potentially bringing together ONGC's domestic offshore experience and Shell's international expertise in complex deepwater operations.

LNG sourcing is the second major area covered by the MoU. The companies will explore potential opportunities to source LNG, which could support India's growing natural gas requirements. India has been expanding its LNG supplier base as part of efforts to reduce exposure to geopolitical and supply-chain risks. The country currently sources LNG from 15 countries, compared with six previously.

The agreement does not commit either company to specific investments or projects at this stage. Instead, it provides a framework for evaluating potential areas of cooperation and identifying commercially viable opportunities in upstream exploration and gas supply.

The partnership brings together complementary capabilities. ONGC is India's largest oil and gas exploration company, with extensive experience in domestic offshore assets, while Shell has global capabilities across deepwater exploration and LNG. Their cooperation could support efforts to develop India's more technically challenging offshore resources.

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ONGC has previously pursued partnerships with international energy companies to strengthen its deepwater exploration capabilities. The latest agreement with Shell is part of the company's broader effort to attract global expertise and technology into India's offshore exploration programme.

The proposed collaboration could therefore create opportunities across the upstream and gas-supply segments while supporting India's longer-term objective of improving domestic energy production, LNG availability and energy security.