OVL enters into MoU with Russia's Sistema for hydrocarbon interests

ONGC Videsh Limited (OVL), a wholly-owned subsidiary of the public sector Oil and Natural Gas Corporation (ONGC), has entered into a non-exclusive memorandum of understanding (MoU) with Russian compay Sistema to explore the possibilities of jointly studying and, if mutually agreed, to participate in oil and gas assets in Russia and third countries.

The MoU came after protracted discussions between OVL and Sistema, which is a leading diversified group of Russia with investments in India.

The agreement was signed at the meeting of the India-Russia CEOs' Council in Moscow yesterday on the conclusion of Prime Minister Manmohan Singh's three-day visit to Russia.

OVL entered the Russian hydrocarbon sector in 2001 with the acquisition of participating interest in Sakhalin-1 project. It acquired Imperial Energy in Tomsk Region, Western Siberia early this year. The Company has strong relationship with the Rosneft and Gazprom, the national oil companies (NOCs) of Russia and proposes to continue and expand its joint works with them.

Sistema entered the mobile telephony sector in India in 2008 and proposes to diversify into the hydrocarbon sector and develop a mutually beneficial relationship with the ONGC group.

ONGC Chairman and Managing Director R S Sharma said the understanding with Sistema was a step forward in jointly studying and pursuing interest in the prolific and hydrocarbon rich regions of Russia and CIS countries.

Mr. Vladimir Evtushenkov, Chairman, Sistema, said he was happy to enter into an understanding with ONGC. He said ONGC's expertise and presence in Russia and various other countries would help the two comlpanies to acquire and develop hydrocarbon assets in Russia and third countries.

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