India, China sign energy cooperation pact
21 Dec 2006
Mumbai:
Top oil consumers India and China have signed an agreement
to cooperate in acquisition of oil and gas fields in
other countries. A memorandum of understanding has been
signed with China's National Development and Reform
Commission (NDRC), petroleum minister Murli Deora said.
The areas of co-operation include international trade
and exploration and prospecting (E&P) activities
in third countries, he said.
"During my visit to Beijing last week, a memorandum
of understanding was signed with China's National Development
and Reform Commission (NDRC) to cooperate in exploration
and production efforts in third countries," he
said.
NDRC is the influential body in matters pertaining to the hydrocarbon industry in China. Deora and NDRC chairman Ma Kai signed the agreement.
Indian Oil Corp (IOC) also signed an agreement with Sinopec, China's national oil firm, for cooperation in refinery and petrochemical sector, he said.
As
of now, the two countries are competing with each other,
which often results in jacking up prices. India and
China, however, have joined hands to develop two properties
in Syria and Columbia.
"Our competition has only benefited the seller.
Our experience in Syria and Columbia has shown that
we stand to benefit a great deal if we were to cooperate,"
he said.
Energy ministers of the five countries which attended
the round table - US, China, Korea, Japan and India
- have also agreed to diversify energy mix to make use
of clean and alternative energy like nuclear power and
renewables and improve energy conservation and efficiency,
Deora said.
The
countries have also agreed to work towards strengthening
cooperation on strategic oil stocks and promote international
energy security, he said.