Gazprom and gas authority of India Ltd Ink Cooperation Agreement

Today, in New Delhi, within the Russian Federation President Vladimir Putin’s official visit to India, Alexey Miller, Gazprom’s Management Committee Chairman and Proshanto Banerjee, Chairman & Managing Director of the state-run company Gas Authority of India Limited (GAIL) signed an Agreement on Strategic Cooperation. Under the Agreement, Gazprom and GAIL’s major businesses will include the study and implementation of projects on natural gas deliveries to India as well as the intensification of joint activities at Block 26 in the Bengal Bay. In addition, the Agreement stipulates cooperation between the companies in the oil sector.

Simultaneously, Gazprom and GAIL will interact in the following directions:

  • exploration, production, transmission and marketing of natural gas, oil and other energy carriers;
  • design, construction, operation and maintenance of gas mains, underground oil & gas storage facilities as well as pipeline distribution networks; diagnostics and control of technical condition and safety of gas & oil trunk lines and other industry infrastructure;
  • processing of gas and other hydrocarbons; use of gas as motor fuel;
  • supplies of equipment for the oil industry.

Pursuant to the Agreement, Gazprom and GAIL will promote sci-tech cooperation, primarily, in the prospecting and gas & condensate field development sectors. The parties also plan to study potential exploration and production of gas hydrates in India’s offshore and extraction of methane from coal beds. At the same time, projected cooperation between the parties will be aimed at staff qualification upgrading & re-training and labor force exchange.

To successfully implement the Agreement, the parties will set up a Joint Coordinating Committee.


India’s proved natural gas reserves account for 850 bcm. The country annually produces to 30 bcm of gas channeled to meet internal gas demand.

India’s Petroleum Ministry coordinates oil and natural gas production, gas and refined products processing and distribution, oil and refined products exports and imports. The state-controlled companies Oil & Natural Gas Corporation (ONGC) and Oil India Ltd are involved in geological prospecting and oil & gas production. Gas Authority of India Limited (GAIL) is a leading gas transmission and distribution company exercising control over 95% of this sector infrastructure.

Gazprom and GAIL are running joint business at Block 26 in the Bengal Bay within the Production Sharing Agreement concluded on 3 October 2000 with the Government of the Republic of India and within the Working Agreement signed between the parties on 7 June 2001. The Documents stipulate geological prospecting and hydrocarbon extraction & marketing.

Block 26 is situated on India’s continental shelf in the northern Bengal Bay. The Block 26 Exploration Program is scheduled over 7 years.

Information Directorate, OAO Gazprom

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