BackONGC signs exploration cooperation accord with Mitsui of Japan
ONGC, Mitsui tie up for exploration and production of petroleum and natural gas opportunities in the third partnership deal between them
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New Delhi: State-owned Oil and Natural Gas Corp (ONGC) has signed an agreement with Japanese conglomerate Mitsui and Co. for cooperation in oil and gas exploration, the third pact between the two firms since 2012.
The memorandum of understanding (MoU), signed here on 24 January, “provides for cooperation in exploration and production for conventional and unconventional petroleum and natural gas opportunities in India and in third countries," a company statement said here.
ONGC and Mitsui had signed an MoU for cooperation in gas and liquefied natural gas (LNG) business in August 2012. Later in March 2013, Mitsui had entered into another MoU with ONGC, Bharat Petroleum Corp and New Mangalore Port Trust to explore setting up a 5 million tonne LNG import terminal at Mangalore in Karnataka.
ONGC and Mitsui are also partners in a giant Mozambique gas field, where the Indian explorer’s overseas arm, ONGC Videsh Ltd (OVL), has picked up a 16% stake for about $4.3 billion. Mitsui is the second-biggest stakeholder in the Rovuma-1 field in the waters off the African nation with a 20% interest. The field holds 35 to 65 trillion cubic feet of gas reserves which are planned to be converted into liquid gas (LNG) for export to nations such as India. First gas from the fields, where state-owned Oil India Ltd has a 4% interest and a unit of Bharat Petroleum another 10%, is planned for 2018.
ONGC is hoping that together with Mitsui, the share of gas that can come to India will rise to 50% of the 34 million tonnes per annum of LNG production planned from the fields. This LNG can be brought to the planned Mangalore terminal.
US energy firm Anadarko Petroleum is the operator of Area-1 with a 26.5% stake, Thai state oil company PTT Exploration and Production PCL has 8.5% and Mozambique’s state-owned ENH 15%. Mitsui is a diversified trading, investment and service enterprise with 151 offices in 67 countries. Its business ranges from iron and steel products, mining and metals to chemicals, energy and food resources.
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