ONGC inks pact with RIL to explore infrastructure sharing - Angel Broking

Media reports suggest that Reliance Industries Ltd (RIL) and ONGC are planning to sign a formal pact for sharing the infrastructure in the gas-rich D6 block. ONGC, which is developing deep-sea fields adjacent to Reliance's D6 block has signed a memorandum of understanding (MoU) with RIL to work out modalities of sharing of infrastructure, identifying additional requirements and firming up commercial terms. ONGC said this would minimize its capital expenditure and speed up development of its deep-sea gas fields which will produce 6-9 mmscmd of natural gas in four years. The companies intend to enter into a formal agreement after conducting a joint study which will be completed in the next 9 months.

We await further clarity on the modalities of this deal and until then maintain our Buy view on ONGC and Neutral on RIL.

Source : Equity Bulls

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