On working meeting of Alexey Miller, Mani Shankar Aiyar and Subir Raha
Today the Gazprom Headquarters hosted a working meeting of Alexey Miller, Chairman of the Company’s Management Committee, Mani Shankar Aiyar, India's Minister of Petroleum and Subir Raha, the Chairman & Managing Director of the Oil and Natural Gas Corporation (ONGC).
The meeting discussed the prospects for the Russian-Indian cooperation in the oil and gas sector, paying special attention to the interaction between Gazprom and Indian petroleum companies when arranging for fuel supplies to this country.
Within the meeting Gazprom and ONGC Group signed a Memorandum of Understanding. Pursuant to the document signed, the parties will study the prospects for joint oil and gas production projects in India, Russia and third countries, as well as the prospects for final product transportation and sales on the markets of India and third countries. The companies will seek the ways for arranging supplies of liquefied natural gas (LNG) to India and third countries.
Gazprom and ONGC Group will cooperate in the following areas:
- sharing of capacities on advanced processing of natural gas, oil and other hydrocarbon feedstock in Russia, India and third countries as well as establishing supplies of ready petrochemicals and gas chemicals to Asia-Pacific and South Asian countries, primarily to India;
- engineering, construction and operation of gas trunklines and underground gas storage (UGS) systems in India and third countries;
- promoting sci-tech cooperation in major areas of gas industry (exploration and development of gas, gas condensate and gas hydrate fields, coalbed methane; underground gasification of ligniferous/coal seams; creation and operation of gas and liquid hydrocarbon storage systems (UGS facilities inclusive);
- cooperation in personnel qualification upgrade and re-training.
The parties have agreed to establish a joint working group responsible for the Memorandum execution.
India with its proven natural gas reserves amounting to 850 billion cubic meters occupies the fifth place in the Asia-Pacific region following Indonesia, Australia, Malaysia and China.
In 2003 natural gas production in India accounted for 30 billion cubic meters. In the country's energy balance natural gas accounts for 8 per cent (oil – 32 per cent). According to the forecasts, in 2005 natural gas demad will rise to 37 billion cubic meters, by 2006 – to 43 billion cubic meters and in 2010 – 110 billion cubic meters.
India ’ s Petroleum Ministry coordinates oil and natural gas production, refined product and gas processing and distribution, oil and refined product exports and imports.
ONGC Group is India's largest company in terms of hydrocarbon proven reserves and their production (84.11 per cent owned by the Indian Government). The company is mainly focused on oil and gas field exploration and development.
At present, the company is operating 115 oil and gas fields, with the Mumbai field being the largest one ensuring some 40% of India ’ s overall production. ONGC Group is being involved in 13 international projects implemented in 10 countries of world.