ONGC Videsh Ltd, India’s flagship overseas oil and gas firm and the nation’s largest refiner Indian Oil Corporation (IOC) on Friday signed agreements with Russia’s Gazprom for cooperation in the hydrocarbon sector. Indian oil and gas companies are looking to acquire stakes in prolific oil and gas areas in Russia as part of a larger strategy to acquire equity oil and gas overseas that could offset the country’s huge 85% dependence on imports for meeting energy needs.
OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), inked MoUs on the side lines of the Eastern Economic Forum at Vladivostok, the company tweeted.
IOC also signed a similar MoU for cooperation in the hydrocarbon sector.
Oil Minister Hardeep Singh Puri is leading an official and business delegation to Russia to participate in the 6th Eastern Economic Forum (EEF) Summit in Vladivostok.
Russia is the largest investment destination for the Indian oil and gas companies. Indian public sector companies have made investments of about USD 16 billion in Russia, including in the Far East and East Siberia, in oil and gas assets such as Sakhalin-1, Vankor and Taas-Yuryakh.
Russia is also the largest investor in India’s oil and gas sector.
“Biggest Indian oil multinational @ongcvideshltd inks MoU with #Russian oil major @GazpromEN to cooperate in #Hydrocarbon sector, on side lines of #EEF2021 at Vladivostok in presence of @PetroleumMin @HardeepSPuri, CEO @gazpromneft Alexander #Dyukov Indian ambassador,” OVL tweeted.
Puri also tweeted about the agreements.
“In a meeting with the CEO of #Gazpromneft Alexander #Dyukov welcomed two MoUs of Cooperation signed with @IndianOilcl and @ongcvideshltd which demonstrate our companies’ abiding interest in engagement with Russian energy companies,” he said.
The minister also met officials of Russian giants Sibur and Novatek.
“Strengthening cooperation in Petrochemical sector. Met Dmitry Konov, Chairman of Management Board of Sibur to discuss investments into India,” he said. “A useful & productive meeting with Leonid Mikhelson, CEO of Novatek, to discuss cooperation in the LNG sector.”
Not just stake in oil and gas fields, India is also looking to import more liquefied natural gas (LNG) from Russia to cut reliance on the Middle East.
State gas utility GAIL already imports 2.5 million tonne per annum of LNG from Gazprom.
Also, India is interested in buying Russian oil.
IOC last year signed a deal with Russian oil major Rosneft to buy up to 2 million tonne, or 40,000 barrels per day (bpd) of crude.
This is part of plans to diversify sources of crude oil imports in order to hedge political risks that threaten to choke off supplies from a particular region or country.
