ONGC Videsh-PetroEcuador ink MoU

Mumbai, July 20: ONGC Videsh, a wholly owned subsidiary of the state owned Oil and Natural Gas Corporation (ONGC), has signed a memorandum of understanding (MoU) with PetroEcuador, the state oil company of Ecuador.

Announcing this, ONGC Videsh said the MoU has been inked for co-operation in the energy sector with objective of developing and promoting petroleum, gas, electricity, petrochemical, external hydrocarbon commercialisation, geological and petroleum research.

PetroEcuador and OVL would collaborate in the area of exploration and exploitation of hydrocarbons in Ecuador on mutually agreed terms. Such collaboration would include establishment of joint ventures for exploration and exploitation of hydrocarbon in existing and new concessions with a view to increase production.

PetroEcuador would participate with OVL in the bidding of oil and gas blocks in Ecuador and other countries. OVL, on the other hand, will assist PetroEcuador on mutually agreed terms in areas of contract negotiation related to the exploration and hydrocarbon production and constitution of joint ventures companies.

OVL will train Ecuadorian nationals in research and development institutes of ONGC/OVL in areas of exploration, production, safety, environmental management and external petroleum commercialisation.

In addition, OVL will study improvement options of the value chain of liquid natural gas in Ecuador.

The MoU was signed by Ecuador's Ambassador to India Dr Carlos Abad, on behalf of PetroEcuador, and OVL Managing Director R S Butola from the Indian side.

The signing ceremony was done in the presence of Union Petroleum and Natural Gas Minister Murli Deora and the Republic of Ecuador Minister of External Relations Francisco Carrion Mena, who is on a state visit to India.

UNI