|Press Communiqué on signing of MOU between ONGC Videsh Limited (“OVL”) and PetroEcuador for cooperation in Hydrocarbon Sector|
20 July, 2006
ONGC Videsh Limited (“OVL”) today signed an Memorandum of Understanding (MOU with PetroEcuador, the State Oil Company of Ecuador for cooperation in the energy sector with objective of developing and promoting petroleum, gas, electricity, petrochemical, external hydrocarbon commercialization, geological and petroleum research.
PetroEcuador and OVL would collaborate in the area of exploration and exploitation of hydrocarbons in Ecuador on mutually agreed terms. Such collaboration to include establishment joint ventures for exploration and exploitation of hydrocarbon in existing and new concessions with a view to increase production.
PetroEcuador shall jointly participate with OVL in the bidding of oil & gas blocks in Ecuador and other countries.
OVL shall assist Petroecuador on mutually agreed terms in areas of contract negotiation related to the exploration and hydrocarbon production and constitution of joint venture companies.
OVL shall train Ecuadorian nationals in research and development institutes of ONGC/OVL in areas of exploration, production, safety, environmental management, external petroleum commercialization etc.
OVL shall also study improvement options of the value chain of liquid natural gas in Ecuador.
The MOU was signed in the presence of the Hon’ble Minister of Petroleum & Natural Gas of India, Shri Murli Deora and H.E. Mr. Francisco Carrion Mena, Hon’ble Minister of External Relations of the Republic of Ecuador, who was on a State visit to India from 17th to 19th July 2006. On behalf of PetroEcuador, Dr Carlos Abad, Ambassador of Ecuador to India signed the MOU and Mr R.S. Butola, Managing Director ,OVL signed from the Indian side.