Mani Shankar Aiyar

New Delhi: Petroleum Minister Mani Shankar Aiyar leaves on Wednesday for China in a bid to enter into a ``cooperative relationship'' in the hydrocarbons sector especially related to bidding for overseas oil reserves. He has called upon China to cooperate to eliminate rivalry, which ends up making oil and gas acquisitions more expensive.

Briefing the media before embarking on a two-day visit to China, he said a cooperative relationship was not only desirable but also eminently feasible. He said the market would dictate competition among the companies from the two countries at some point of time. But there would also be opportunities where it might be in the interest of both sides to cooperate and submit joint bids, he said.

On the agenda will be a meeting of Mr. Aiyar with Chairman of China's National Development and Reform Commission, Ma Kai, to be followed by an MoU on hydrocarbon cooperation. This document is expected to provide for cooperation across the hydrocarbon value chain, including exploration and production, downstream projects, strategic storage and stockpiling, research and development, conservation and promotion of environment-friendly fuels.

It also provides for cooperation in unconventional fuels such as coal bed methane, coal gasification and hydrates. Through the MoU, a joint working group on hydrocarbon cooperation will be set up for regular interaction on these issues.

City gas distribution

The ONGC Videsh Limited is also slated to enter into a memorandum of understanding with its Chinese counterpart, the China National Petroleum Corporation. Besides GAIL will be holding talks with CNOOC, Sinopec and Beijing Gas for cooperation in exploration and production, city gas distribution and gas projects.

The Directorate-General of Hydrocarbons will also be signing an MoU with China's Research Institute of Petroleum Exploration and Development.

Mr. Aiyar will also address a gathering of senior government officials, corporate leaders and members of China's think tanks on ``India and China in Asia's Quest for Energy Security.''

He described his visit as the beginning of a new chapter in bilateral relationship.

The two countries coming together would mean lesser money being paid for acquiring overseas properties.

In addition, he maintained that the burgeoning demand for oil and gas resources has led to the development of almost identical energy security policies by the two countries.

Printer friendly page  
Send this article to Friends by E-Mail