ONGC Videsh signs agreement with Argentinian energy firm

Both the companies will analyse the opportunities for cooperation in upstream sector in Argentina, India and third countries

ONGC Videsh Ltd, the overseas arm of state explorer Oil and Natural Gas Corp (ONGC), has signed an agreement with Argentinian energy firm YPF S.A. for jointly investing in oil and gas fields in Latin American nation and elsewhere.

OVL and YPF signed a Memorandum of Understanding (MoU) on Monday to cooperate in the hydrocarbon sector, the company said in a statement here.

"Under the MoU, the two companies will analyse the opportunities for cooperation in upstream sector in Argentina, India and third countries," it said.

The MoU also envisages collaboration in the areas of research and development and human resources.

"Argentina is an important oil and gas producing country in Latin America. It also has excellent potential for unconventional oil and gas (tight/shale), particularly in the Neuquen Basin," the OVL statement said.

OVL is India's largest international oil and gas company with stakes in 35 projects in 16 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Kazakhstan, Libya, Mozambique, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam.

It currently produces about 160,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves of 637 million tons of oil equivalent as on March 31.

YPF SA, a 51% majority-owned entity of the Government of Argentina is an integrated energy company. It is the main oil producer in Argentina, with more than 41% market share of oil and gas.

It has three strategically located refineries in the country and a network of over 1500 service stations.