India, China sign MoU on oil, gas exploration

India and China today further cemented their friendship and strategic ties by inking a major pact envisaging joint exploration, production and acquisition of oil assets in third countries, which could substantially reduce their energy costs.

"It is an historic moment for India-China relations," Minister for Petroleum and Natural Gas Murli Deora said while disclosing that the two major oil consumers had recently concluded a joint bid in Columbia and Syria.

"We have been working on this MoU and I am sure this agreement will go a long way to strengthen India-China friendship," Deora said after meeting the Chairman of China's National Development and Reform Commission (NDRC), Ma Kai, here.

Deora said the MoU between the two governments, signed at the fag end of the joint celebration of "India-China Friendship Year," would allow oil and gas companies of the two countries to engage in mutually beneficial cooperation in acquiring hydrocarbon assets in third countries without undercutting each other.

The MoU is the second in the key petroleum sector in as many days between the two Asian giants, who have been fiercely competing with each other for access to hydrocarbons assets globally, only benefiting sellers.