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ONGC-Shell deal to fuel oil investments

22nd April 2013

ONGC and Shell close to launching billion dollar partnership which will boost investments across India’s oil sector

ONGC-Shell deal to fuel oil investments
If formally pursued, the co-operation could launch ONGC as a leading downstream player

A billion dollar partnership between India’s ONGC and Shell is close to being outlined, the Hindustan Times reported on Sunday, as both companies prepare to announce a co-operation across the oil and gas value chain.

The partnership will include exploration and production activities, crude oil refining and marketing of petroleum products in India. If formally pursued, the co-operation could launch ONGC as a leading downstream player and mark Shell’s return to India’s E&P sector after 16 years.

 “The partnership covers vast areas from E&P to refining to downstream marketing of petroleum products… going forward you may also see the two companies invest in setting up a new world class refinery complex on the west coast and subsequently expand their presence in retailing fuel,” the Hindustan Times quoted sources as saying, with an announcement expected next month.

“As Shell is entering late into India’s E&P sector, they want to make up for the lost time by joining hands with ONGC in exploring oil and gas in India,”  said Sudhir Vasudeva, chairman and managing director, ONGC. “Other than collaboration in exploration of oil and gas, we (ONGC) may join them for expanding in the downstream sector as their expertise is well known with Shell Global solutions.