ONGC Videsh MoU with Equatorial Guinea

ONGC Videsh Ltd (OVL) said on Friday it has signed an agreement with Equatorial Guinea for cooperation in oil and gas exploration in the African republic.

The pact was signed on January 20 "to cooperate in the upstream hydrocarbon sector in Equatorial Guinea", said a statement issued by OVL, the overseas arm of state-run Oil and Natural Gas Corp (ONGC).

The MoU was signed on the sidelines of the ongoing 4th India-Africa Hydrocarbons Summit here.

"Under the MOU, Equatorial Guinea will cooperate with ONGC Videsh to explore the potential investment opportunities within the upstream hydrocarbons sector in Equatorial Guinea, as may be of interest to ONGC Videsh," it added.

OVL, which currently has a stake in 36 projects in 17 countries, is alread present in Africa through participation in projects in Mozambique, Sudan and South Sudan.

Inaugurating the two-day hydrocarbons summit here on Thursday, Petroleum Minister Dharmendra Pradhan said that with the global economic situation at a critical phase, it was imperative that India and Africa forge deeper collaboration, particularly in the energy field.

"The global situation makes our collaboration more critical. The fourth India-Africa Hydrocarbons Conference looks to align and initiate future collaborations between India and Africa in hydrocarbons," he said.

India imports around 16 percent of its oil needs from Africa at 32 million tonnes last year, he added.

As many as 25 African nations are taking part in the conference. Nine are represented by their ministers.

Crude accounts for two-thirds of Indian imports from Africa. Petroleum products account for a third of India's exports to Africa.