ONGC teams up with Hindujas for LNG and exploration

New Delhi, Nov 7 (UNI) Oil and Natural Gas Corporation Ltd. (ONGC) and Hinduja Group, today said they would jointly pursue global opportunities in Liquefied Natural Gas (LNG) and linked Expoloration and Production (E&P) business in oil.

The collaboration will leverage the E&P expertise of ONGC and the business-relationship advantage of the Hinduja Group in the hydrocarbon-rich West Asia, with business prospectivity benefits to both entities.

The Memorandum of Understanding (MoU) between ONGC and Ashok Leyland Project Services (ALPS) provides for sourcing of Liquefied Natural Gas (LNG) at competitive terms, to be facilitated by ALPS.

Pursuant to such sourcing, ALPS will be invited to participate in joint development of LNG-based downstream projects at Mangalore SEZ- like LNG-regasification, Power, Petrochemicals, as conceptualised by ONGC Group.

The parties will form joint ventures/unincorporated joint ventures, whose equity structure is expected to be ONGC-49.98 per cent, ALPS-48.02 per cent, FIs/Banks-2 per cent, with the majority ownership remaining with ONGC.

Speaking on the occasion, Chairman and Managing Director of ONGC R S Sharma hoped that the combined strength of both entities will help provide fillip to the energy security of the nation.

Mr Sanjay Hinduja, representing the Hinduja Group, said that the joint venture, once formed, will aim to bring concrete results as envisaged in this collaboration.

UNI RT CS DB2002