In order to acquire oil and gas assets abroad, oil explorer Shell and Oil and Natural Gas Corp (ONGC) are considering to forge a partnership.
Recently, both the firms said they are keen to come together to explore both upstream and downstream opportunities domestically. Some reports suggest that both the firms would extend this partnership to overseas projects as well.
It may be noted that such a partnership, if materialises, would help ONGC develop a strong foothold in the gas business.
ONGC is keen to enter the liquefied natural gas (LNG) business, while Shell and France’s Total already operate a 3.5 million tonne LNG terminal at Dahej, Gujarat.
ONGC, Japanese energy firm Mitsui and BPCL have also signed a pact to study the feasibility of setting up a $500-750-million LNG import terminal at Mangalore.
In 2006, Shell and ONGC entered into a memorandum of understanding (MoU) to examine significant opportunities for future cooperation, both in India and other regions across the world.
The MoU covered exploration and production, coal gasification, natural gas, oil products and refining and petrochemicals.
However, this did not make progress as Shell wanted to invest in some of ONGC’s fields, which the state firm could not facilitate as it would require cabinet approval.
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