OVL, Sistema on joint oil hunt

ONGC Videsh (OVL), the overseas arm of ONGC, has entered into a memorandum of understanding (MoU) with Sistema, a diversified industrial group of Russia having investment in India’s telecom sector, to jointly acquire and develop oil and gas fields in Russia and other CIS countries.

The MoU was inked on Tuesday in Moscow at the Indo-Russian CEOs Business Council meeting on the conclusion of the Indian Prime Minister Manmohan Singh’s visit to Russia. In a statement issued here, ONGC said: “Pursuant to protracted discussions with Sistema, OVL has entered into a non-exclusive memorandum of understanding to explore the possibilities of jointly studying, and if mutually agreed, to participate in attractive oil and gas assets in Russia and third countries.” ONGC CMD R S Sharma said the understanding with Sistema, having significant investment interests in India, is a step forward in jointly studying and pursuing interest in the prolific and hydrocarbon rich regions of Russia and CIS countries.