India’s ONGC, Russia's Rosneft may join forces on oil flows

March 26, 2014

Rosneft (ROSN.MM), the world's top listed oil producer by output, may join forces with Indian state-run Oil and Natural Gas Corp (ONGC.NS) to supply oil to India over the long term, the Russian state-controlled company said on March 25, Reuters has reported.

Rosneft CEO Igor Sechin, an ally of President Vladimir Putin, travelled to India on March 23, part of a wider Asian trip to shore up ties with eastern allies at a time when Moscow is being shunned by the West over its annexation of Crimea.

Rosneft said it had also agreed with ONGC they may join forces in Rosneft's yet-to-be built liquefied natural gas plant in the far east of Russia to the benefit of Indian consumers.

Rosneft did not provide any additional details on its planned cooperation with ONGC.

The company said Sechin and the head of Indian conglomerate Reliance Industries (RELI.NS) also met and discussed potential cooperation in developing Russia's offshore resources, viewed by Moscow as a source of future oil production growth.

India was the last country in Sechin's Asian trip, where he also visited Japan, South Korea and Vietnam.

Rosneft said Sechin also discussed potential shipments of Russia's East Siberia-Pacific Ocean (ESPO) oil blend to India's biggest refiner Indian Oil Corporation (IOC.NS) but did not provide details.

Copyright: Reuters, 2014