India, China to form JV to buy hydrocarbon assets overseas

New Delhi, Nov 26 (UNI) India and China are likely to form a joint venture company to acquire oil and natural gas assets overseas, particularly in Latin America and Africa, to fuel their growing economies.

The two countries will sign an agreement in Beijing next month when Petroleum Minister Murli Deora will be there to attend a ministerial meeting of oil importing countries hosted by China, official sources said.

Among other countries which will be attending the December 15 meeting are the United States, Japan and Korea.

India and China finalised the proposal to form a joint venture at a meeting between Mr Deora and Mr Ma Kai, Chairman of China's planning body, the National Development and Reform Commission.

Mr Ma Kai accompanied Chinese President Hu Jintao who visited India last week. Leading Indian oil companies are expected to float a special purpose vehicle (SPV) to make way for the joint venture.

UNI SN RP GC1718