India, US sign bilateral agreement for hydrocarbon sector

The Indian government signed a three-point bilateral agreement with the US government aiming to harness new technologies in the hydrocarbon sector.

The agreement was signed between Oil Minister Dharmendra Pradhan and US Secretary of Energy Dr Ernest Moniz in Washington.

The two countries agreed to enhance institutional and technical cooperation in specific areas such as assessment and unconventional hydrocarbon reserves in India both onshore and offshore; new technologies in development of second generation bio-fuel and development of petroleum storage.

The bilateral energy co-operation between India and US started in the form of energy dialogue in 2005 under which oil and gas. As part of the bilateral arrangements, Indian companies have also invested in shale oil and gas projects in the US, i.e. GAIL has 20% equity in Eagle Ford basin; IOC and OIL have 10% equity in Niobrara basin. GAIL already has signed contract for annual import of close to 5.8 MMT LNG from US by next year.