Business
India, China ink energy deal -------------------------------- Shweta Rajpal Kohli
Thursday, January 12, 2006 (Beijing):
India and China have signed a deal to jointly bid for global oil and gas projects as and when opportunities arise.
The two nations signed an energy cooperation Memorandum of Understanding on Thursday.
Petroleum Minister Mani Shankar Aiyar, who is in Beijing, has been eager for the two large economies to have a joint energy strategy.
In an exclusive interview, the minister said that there would be more such bids in the year ahead. He also added that it was now for the energy companies to take the partnerships forward.
The minister further said the India-China joint working group would meet at least once a year.
Agreement reached
China and India together consume nearly one-ninth of the world's annual oil production and both depend heavily on imports. And the two can create a mini buyers market in the international oil market, pushing crude prices down significantly.
The plan is for India's biggest oil importer IOC and its Chinese counterpart Sinopec to buy crude together. "We are looking at working together and talking to the main crude suppliers particularly in Middle East and Nigeria," said Sarthak Behuria, Chairman, IOC.
The state owned companies on both sides have also agreed to work together. Gail signed MoUs with CNOOC and Beijing Gas while ONGC Videsh signed up for overseas exploration with CNPC. Upstream regulator DGH has also inked a pact to work with Chinese counterpart RIPED.