ONGC signs MoU with Shell, ASB Malaysia

08 February 2006

ONGC and Shell Group''s Shell Bitumen India Pvt Ltd (SBIPL), have tied up to manufacture and market bituminous products. The MoU was signed by Subir Raha, ONGC chairman and managing director and Vikram Mehta, chairman, Shell Group of Companies in India.

The MoU is at carrying out a joint market research to evaluate India''s bitumen and value added bitumen (VAB) market potential over the next 10 years in view of the rapid expansion of road networks in India.

This JV between the Company and Shell will provide innovative solutions for building world-class roads in India in urban areas, and will also enhance the quality of rural roads.

The MoU also covers economic evaluation of investing in a stand-alone refinery in India to be established at east or west coast.

Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of ONGC and SIBPL, would jointly constitute the study and implementation team for this MoU as MRPL owns and operates a refinery at Mangalore, with a current listed bitumen production capacity of 250,000-metric tons per annum.

In another development, ONGC has announced a 3-year contract with Malaysia''s Asian Supply Base Sdn Bhd (ASB) to upgrade ONGC''s existing Nhava supply base meet international standard. ASB will provide consultancy services.. ASB, a Malaysian government entity, is a one-stop centralised logistic support centre for the oil and gas exploration, development and production activities.