Pact for oil and gas exploration
12 December 2008
Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC) have signed a Memorandum of Understanding (MoU) at New Delhi on 10th December 2008 for mutual cooperation in the fields of Oil and Gas exploration, production and marketing.
Pact for oil and gas exploration
The MoU envisages ONGC supporting IOC in exploration under NELP, and IOC supporting ONGC for marketing its Aviation Turbine Fuel; the two companies will jointly forge strategies for marketing of Natural Gas produced by ONGC . The MoU also incorporates IOC supplying HSD to ONGC for meeting latter’s operational requirements.
The umbrella understanding, which also includes finalisation of the long-pending Crude Oil Supply Agreement, will facilitate development of mutually beneficial agreements in the identified areas of cooperation and provide a platform to resolve commercial issues between the two.
Speaking on the occasion R S Sharma, CMD, ONGC said, "It is indeed a momentous day for two giant organisations to leverage their synergies, culminating today in the form of a MoU. Joining and alliance with Indian Oil is a matter of pride for us. We need to see that the generic aspects get translated into more definitive agreements".
Underlining the importance of joint efforts, Sharma added "E&P is highly capital and risk intensive. Our collaborative efforts paid off in the Farsi Block indicating an in place reserves of 14 TCF of Gas. It is therefore incumbent that we work together more intensely
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