ONGC, Japan's Mitsui sign another MoU for joint exploration

India's state-run Oil and Natural Gas Corporation Ltd (ONGC) and Japan's Mitsui & Co Ltd on Monday announced the signing of a memorandum of understanding (MoU) for cooperation in oil and gas exploration within and outside the country.

Masami Iijima, president and CEO of Mitsui and Co, and Sudhir Vasudeva, CMD of ONGC, signed the agreement, the second since the two signed an MoU on 22 August 2012.

''The MoU provides for cooperation in exploration and production for conventional and unconventional petroleum and natural gas opportunities in India and in third countries,'' ONGC said in a statement.

In August 2012, ONGC and Mitsui had entered into an MoU for wide-ranging cooperation in the gas and liquefied natural gas (LNG) business. Later, in March 2013, Mitsui had entered into another MoU with ONGC, BPCL and New Mangalore Port Trust for the feasibility study of an LNG terminal at Mangalore.

In August 2012, ONGC and Mitsui had entered into an MoU for wide ranging cooperation in gas and LNG business. Later, in March 2013, Mitsui had entered into another MoU with ONGC, BPCL and New Mangalore Port Trust for feasibility study of a LNG Terminal at Mangalore.

Mitsui is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 151 offices in 67 countries as of April 2013.

Utilising its global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in iron and steel, mineral and metal resources, infrastructure projects, integrated transportation systems, chemicals, energy, food resources and services, consumer services, innovation and corporate development business.

State-run ONGC, with interest across the hydrocarbon value chain, including oil and gas exploration, LNG terminal, regasification and marketing infrastructure, is also the highest valued and the highest profit making among India's public sector enterprises.

In the financial year ended 31 March 2013, ONGC Group produced 58.7 million tonne of oil and oil equivalent gas (mmtoe) (approximately 1.2 mmboe per day), had a turnover of Rs165,849 crore ($30.45 billion) and profit after tax of Rs24,220 crore ($4.44 billion). It had total oil and gas reserves of 1,759 mmtoe as of 31 March 2013.