Oil and Natural Gas Corporation Ltd. (ONGC) has entered into an MoU with global oil major BP, to collaborate in Exploration & Production (E&P) business in India and abroad, which include sharing of knowledge in Coal Bed Methane (CBM) and Deepwater exploration.
The MoU was signed at a simple ceremony at ONGC’s corporate office in New Delhi on 31st August 2007. The MoU was signed by ONGC’s Director (Exploration) Mr. D K Pande and BP’s President, Middle East & South Asia Mr. Steve Peacock, in the presence of ONGC’s CMD Mr. R S Sharma, BP India’s Country Head Mr. Ashok K Jhawar, other Directors of ONGC, and senior executives of ONGC and BP.
The MoU also envisages possible participation in each other’s acreages in India and abroad, including offshore licenses and the CBM acreages in India. The MoU also provides for joint bidding by ONGC and BP for exploration acreages in India and abroad.
The MoU is valid for an initial period of 18 months, which can be extended further by mutual agreement of the two corporations.
After signing of the MoU, ONGC CMD Mr. R S Sharma said that both the oil majors have varied experiences in Exploration and Production business and this synergy will give competitive advantages to both entities in global operations.