India, China sign energy cooperation pact

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.