ONGC-Shell ink deal

Oil and Natural Gas Corporation, India's largest profit making firm, on Thursday signed a memorandum of understanding with Royal Dutch Shell, world's third largest oil firm for cooperation in oil and gas exploration, refining and renewable sources of energy.

The MoU was signed by ONGC chairman and managing director Subir Raha and Shell (India) chairman Vikram Singh Mehta.

Raha said the two companies would look at joint exploration in blocks owned by ONGC and develop surface coal gasification project.

The collaboration would extend to possible participation by the two companies in the petrochemical plant at Hazira, export of products from Mangalore Refinery and Petrochemicals Ltd, manufacture of high-grade bitumen and renewable sources of energy like windfarms.

Mehta said: "Shell is not present in upstream in India. This MoU will fulfill the gap."

Petroleum Minister Mani Shankar Aiyar said the MoU covers areas of my deepest concern. The MoU would network Shell's immense knowledge base with ONGC's technical know-how."

"We have to exponentially increase our domestic production of oil and gas. Shell's partnership will help do that."