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GAIL, OIL sign MoU

NEW DELHI: GAIL (India) and Oil India Limited (OIL) have signed a memorandum of understanding (MoU) for joint cooperation in various business areas.

The agreement was signed by GAIL Chairman and Managing Director U. D. Choubey and OIL Chairman and Managing Director M. R. Pasrija.

Various areas of mutual interests identified in the MoU include exploration and production, natural gas marketing and transmission, city gas distribution, coal bed methane (CBM), petrochemicals and technology and knowledge sharing.

Both companies will explore opportunities for cooperation in greater details so that the respective resources could be pooled on the basis of mutuality and reciprocity, according to an official release here.

As part of the agreement, the two companies will jointly participate in the potential blocks, mainly onshore and offshore blocks in the forthcoming NELP VII bidding round.

The two companies will examine the possibility of joint bidding for overseas exploration blocks and securing farm-in options in already awarded exploration blocks in India and abroad.

Considering the likely discovery of gas by OIL from its E&P blocks and GAIL’s vast geographical spread of its existing/planned gas transmission networks and its experience in marketing of gas, the two companies will explore cooperation in transportation and marketing of OIL’s share of gas from new discoveries through the GAIL’s existing pipeline network and new infrastructure being created/planned by GAIL.

The two companies will examine joint implementation of city gas distribution projects in major cities of Assam and in other States through the joint venture route along with interested third parties. Similarly, GAIL and OIL will discuss cooperation in CBM opportunities, the petrochemicals sector in India and abroad including joint participation in the next CBM bidding round in India.

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