BP, ONGC tie up for projects in India, abroad

NEW DELHI: Flagship explorer ONGC and British energy major BP plc on Monday signed a framework MoU (Memorandum of Understanding) to explore partnerships in oil and gas projects in India and internationally, giving a much-needed leg-up for India's pitch for investments at the India Energy Week beginning here on Tuesday.

The MoU comes within a month of ONGC selecting BP as a technical service provider for raising output from its flagship Mumbai High oil and gas field. The focus of the collaboration will be on exploration and production as well as trading, besides other vectors of the energy sector, the companies said after signing the MoU in the presence of oil minister Hardeep Singh Puri.

The companies see scope for jointly bidding for offshore acreage under India's Open Acreage Licensing Programme (OALP) rounds in partnership with their respective partners. In addition, the companies see potential for collaborating in deep-water exploration, enhancing production and optimising management of ONGC's maturing fields.

The MoU envisages value-creation through strategic collaboration in trading and other areas, such as carbon sequestration. The MoU is valid for three years, during which both parties will work together in the identified areas of collaboration.

"ONGC and BP have agreed to explore opportunities for collaboration and partnership across the energy industry in India and internationally, focused on oil and gas exploration and production, as well as trading and extending to other energy vectors," a statement said.