ONGC signs MoU with BP for oil exploration, trading collaboration

State-owned Oil and Natural Gas Corporation on Monday said it has signed a pact with global oil major BP to explore collaboration in exploration and production, trading and other energy vectors, in India and internationally.

The MoU comes within a month of ONGC selecting BP as a technical service provider for raising output from its flagship Mumbai High oil and gas field.

"ONGC and BP have agreed to explore opportunities for collaboration and partnership across the energy industry in India and internationally, focused on oil and gas exploration and production, as well as trading and extending to other energy vectors," the firm said in a statement.

The two companies signed a memorandum of understanding (MoU), on the eve of India Energy Week, the premier energy event in India.

The signing ceremony was attended by ONGC Chairman and CEO Arun Kumar Singh and BP Executive Vice President, William Lin, along with senior leadership from both organisations.

"Under the terms of the MoU, BP will collaborate with ONGC to jointly explore and evaluate potential business opportunities in oil and gas projects both within India and internationally," the statement said.

Specific areas of cooperation will include to explore potential collaboration and share best practices for deep-water exploration; to enhance production and optimise the management of ONGC's maturing fields; and to jointly bid for mutually agreed offshore acreage under India's Open Acreage Licensing Program (OALP) rounds in partnership with their respective partners.

The MoU further encompasses strategic collaboration to create value in trading and in additional energy vectors, such as carbon sequestration.

The MoU is valid for three years, during which both parties will work together in the identified areas of collaboration.