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Indian and Chinese energy firms to renew pact

19th June 2012

Indian and Chinese energy giants have agreed to cooperate on exploration for mutual interest

ONGC and CNPC join forces on hydrocarbon exploration

India’s Oil and Natural Gas Corp (ONGC) and China National Petroleum Corp (CNPC) have signed an agreement to renew a cooperation pact in areas such as exploration, the chairman of the Indian company has said.

The energy-hungry Asian nations -- widely blamed for inflating global oil prices -- usually compete for stakes in foreign oil and gas projects to secure supplies, Reuters reported.

But the rapid growth of their economies has helped them form a strong foundation for greater cooperation.

"This [agreement] is for examining possibilities of mutual interest in upstream downstream and all related area," said Sudhir Vasudeva.

This came after officials of CNPC met India's oil minister S. Jaipal Reddy and officials from ONGC's overseas investment arm ONGC Videsh, refiner Indian Oil Corp and gas utility GAIL (India) Ltd.

Chinese and Indian oil companies are already working together on schemes in Syria and Sudan as the two nations seek reserves to feed their large economies, which require ever-increasing supplies of imported oil.