The companies intend to enter into a formal agreement after conducting a joint study that will be spread over the next nine months, said the media report.
Moreover, the scope of work under MoU includes working out the modalities for sharing infrastructure, identifying additional requirements as well as firming up commercial terms.
"It is a win-win situation not only for both the companies which are striving hard to accrete new reserves and put them on production at the quickest time but also for energy starved nation." ONGC, Chairman, Sudhir Vasudeva told media.
Under the agreement, ONGC has estimated that it will produce about six to nine million metric standard cubic meter per day of gas by mid-2017 from G-4, Krishna Godavari-DWN and D&E fields, added the media report.
Moreover, ONGC said that the MoU would not only minimise its initial capital expenditure but also expedite its field development.