Aiyar to discuss joint oil, gas bidding with China

Talks on for joint bidding in Third World countries.

GAIL and ONGC Videsh Ltd (OVL) may sign memoranda of understanding with Chinese companies, including China National Petroleum Corporation (CNPC), CNOOC, Sinopec and Beijing Gas, to jointly bid for projects in third world countries.

Petroleum ministry officials said the joint bids would broadly cover ventures in exploration, production and survey of petroleum and natural gas resources in third world countries.

"The pacts are being discussed and the final areas of co-operation will be looked at during my two-day visit to China, starting January 12," Petroleum Minister Mani Shankar Aiyar told reporters today.

Aiyar called on China to cooperate in bidding to prevent "two of the world's fastest-growing economies" from making overseas energy assets too costly for acquisition.

"The market will dictate competition between the companies in both the countries but there will be opportunities where it may be in the interest of both the parties to cooperate and submit joint bids," he said.

An Indian delegation led by Aiyar and comprising PSU chiefs, including GAIL CMD Prashanto Banerji, OVL Managing Director RS Butola and IndianOil CMD Sarthak Behuria, will be in China on Thursday and Friday to sign a series pacts. The delegation will meet Ma Kai, chairman of China's National Development and Reform Commission.

While OVL, India's flagship firm for overseas oil and gas field acquisitions, would sign a pact with its Chinese counterpart CNPC, GAIL would sign agreements with CNOOC, Sinopec and Beijing Gas, Aiyar said.

India's upstream oil regulator Director-General of Hydrocarbons will sign a pact with China's Research Institute of Petroleum Exploration and Development. An MoU will also be signed for co-operation in exploration, downstream projects, strategic storage, research and development.

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TOGETHER WE STAND

Joint bids will broadly cover ventures in exploration, production and survey of petroleum and natural gas

Final areas of co-operation will be looked at during Aiyar's visit to China, starting January 12

Cooperation in bidding may prevent both countries from making overseas assets too costly