OVL, IOC sign pact with Gazprom

ONGC Videsh Ltd, India’s flagship overseas oil and gas firm, and the nation’s largest refiner Indian Oil Corporation (IOC) signed agreements with Russia’s Gazprom for cooperation in the hydrocarbon sector.

Indian oil and gas companies are looking to acquire stakes in prolific oil and gas areas in Russia as part of a larger strategy to acquire equity oil and gas overseas that could offset the country’s huge 85% dependence on imports for meeting energy needs.

OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), inked MoUs on the sidelines of the Eastern Economic Forum at Vladivostok, the company tweeted.

IOC also signed a similar MoU for cooperation in the hydrocarbon sector.

Oil Minister Hardeep Singh Puri is leading an official and business delegation to Russia to participate in the 6th Eastern Economic Forum (EEF) Summit in Vladivostok.

Russia is the largest investment destination for the Indian oil and gas companies. Indian public sector companies have made investments of about USD 16bn in Russia, including in the Far East and East Siberia, in oil and gas assets such as Sakhalin-1, Vankor, and Taas-Yuryakh.