By Our Staff Reporter
New Delhi, 18 Nov: To explore a strategic alliance on a broad range of energy prospects, India’s Oil and Natural Gas Corporation Limited (ONGC) has inked a Memorandum of Understanding (MoU) with Saudi Arabian state oil producer Saudi Aramco. The two energy companies will look into long-term supply contracts for the sale and purchase of crude, refined petroleum and petrochemical products to create secure and competitive energy sources for the Indian market.
Both the parties also hope to utilise their affiliates in this strategic alliance, namely Mangalore Refinery and Petrochemicals Ltd (MRPL), ONGC Petro-additions Ltd (OPaL) and ONGC Mangalore Petrochemicals Ltd (OMPL) of ONGC and Aramco Trading Company (ATC) of Saudi Aramco. Both parties are also looking forward to exploring low carbon energy demand and supply as part of this strategic alliance.
The MoU was signed by ONGC Chairman and Managing Director (CMD) Subhash Kumar and Saudi Aramco Senior Vice President of Downstream Mohammed Yahya Al Qahtani, today. The signing ceremony took place at the Saudi Arabia Pavilion at Dubai Expo 2020.
Speaking on the occasion, Kumar said, “This MoU further strengthens our bilateral energy relationship, which is one of the cornerstones of the solid historical ties between India and Saudi Arabia. This collaboration will bolster both companies’ capabilities, leveraging our respective in-house competencies while creating value for all stakeholders and offering a framework for expanding the cooperation in other energy-related areas.”
Mohammed Yahya Al Qahtani said, “This ceremony is a testament to the strong and valuable relations between our economies, our countries and our people. India is a strategic and significant market of the Kingdom and we look forward to enhancing our synergies by providing mutually-beneficial opportunities through our global-scale trading network and system with a competitive offering.”