ONGC, CNPC sign agreement to jointly explore oil and gas

State-owned Oil and Natural Gas Corp (ONGC) has signed an agreement with China's largest oil firm, CNPC to jointly explore for oil and gas worldwide.

ONGC yesterday signed a Memorandum of Understanding with China National Petroleum Corp (CNPC) for jointly purusing exploration and production opportunities in third countries, official sources said.

China has doled out loans and infrastructure project fundings to African and Central Asian countries to clinche more oil and gas deals than India.

The two energy-hungry Asian nations have been traditionaly been rivals competing for stakes in foreign oil and gas projects to secure supplies. But now the nations are coming together to cooperate. Chinese and Indian oil firms are already working together in Sudan, Syria and Myanmar.

An ONGC press statement said the MoU for hydrocarbon cooperation was signed ONGC Chairman and Managing Director Sudhir Vasudeva and CNPC Chairman Jiang Jiemen. "This MoU looks to establish and consolidate their energy portfolios globally," it said.

"With this MoU, the companies have agreed to foster their cooperation either directly or through their subsidiaries by expanding cooperation in upstream E&P areas, refining or processing of crude oil and natural gas in midstream or downstream projects, marketing and distribution of petroleum products and construction and operation of oil and gas pipelines."

The areas of cooperation between ONGC and CNPC will also extend to joint participation in suitable hydrocarbon projects in other countries of interest by exchanging information and working for mutual growth and benefit by extending cooperation in hydrocarbon sectors globally.

Vasudeva said, "ONGC drew upon the positive and productive experience of working with CNPC in ONG Videsh Ltd's international operations in Syria, Sudan and the Myanmar Pipeline Project where CNPC is a key participant."

CNPC Chairman remarked, "ONGC's achievements are truly impressive; its comprehensive E&P infrastructure is something that only a few companies worldwide can boast of and its strong financials are a cogent attestation of the efficient leadership at the top and sound fiscal management".