Joint Exploration, Bidding
Indian energy corp sign MoU with Dutch firm
Pallab Bhattacharya, New Delhi
India's state-owned Oil and Natural Gas Corporation (ONGC) signed a memorandum of understanding (MoU) with Dutch energy major Royal Shell for joint exploration and bidding for overseas gas and oil assets. The MoU signed here on Thursday has brightened the prospects of India's participation in Shell's overseas projects including Sakhalin II in Russia. Dutch Shell is the world's third largest energy company. ONGC Chairman Subir Raha told reporters here that the company, which has a 20 percent stake in Sakhalin I, is looking at the possibility of a stake in Sakhalin II and tying up gas from the two projects to make its shipment economically viable. Vikram Singh Mehta, chairman of Shell Companies in India, said the agreement would provide Shell an opportunity to enter the upstream market in India. Raha said there was also a possibility of Shell's participation in the new 15-million ton refinery and petrochemical complex in the southern Indian state of Karnataka. He said the MoU could also facilitate ONGC's picking up a stake in Shell's $600 million LNG import terminal in the western Indian state of Gujarat. The two energy majors would also explore joint development of coal bed methane gas, export of petroleum products from a subsidiary of ONGC, manufacture of high-grade bitumen and petrochemicals.
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