India and Russia to join hands in oil and gas projects

Deora, the Indian Minister of Petroleum, held that the Indian companies led by state owned ONGC Videsh limited (OVL), have already worked with Russia in the Sakhalin 1 project and it was because of the good experience with Russian companies before, that they would like to participate in various other Russian project, including the Sakhlain 3 project.

On a meeting held between the Deputy Chairman of Russian Federation, Alexander Zhuka and Indian Minister of Petroleum, Murli Deora, it was decided to join hands and cooperate in the oil and gas projects and the ventures will be carried out with Russian companies both in India and Russia as well as in third countries.

The meeting was held on Wednesday in India where Deora held that the Indian companies led by state owned ONGC Videsh limited (OVL), have already worked with Russia in the Sakhalin 1 project and it was because of the good experience with Russian companies before, that they would like to participate in various other Russian project, including the Sakhlain 3 project.

Deora, in a press release held that both the companies are willing to join hands with each other and work in cooperation. Indian companies showed a great interest in joining Russian projects and the leading Russian gas company Gazprom also wants to participate in the proposed Iran- Pak- India Gas Pipeline project. The proposals were welcomed with pleasure.

Indian debt to the former Soviet Union minister was also discussed. The debt equals to $ 1 billion and Moscow has decided to repay the debt through joint ventures and not in any commodity form. The Russian Prime Minister, who visited India in March, held that Russia will pay the rupee debt through joint investment projects in India. He further held that the joint projects would include the production of titanium dioxide and a Russian airplane service centre. Bilateral cooperation is possible in space and nuclear energy as well.

OVL would have a 20% participating interest in Sakhlain 1 oil and gas project and a further 20 % on behalf of Roseneft, a Russian national oil company.

On Tuesday, the Russian President Vladimir Putin held that India was a priority partner.