ONGC, Shell ink strategy deal

This agreement may also open the possibility of ONGC getting a stake in Shell8217;s overseas projects, including Sakhalin-II in Russia. For Shell, the MoU may open possibilities of participating in ONGC-MRPL8217;s new 15 million tonnes refinery and petrochemical complex being planned adjacent to Mangalore Refinery and Petrochemicals Ltd MRPL.

Speaking to reporters, ONGC chairman and managing director Subir Raha said the agreement may also help in getting ONGC a stake in Shell8217;s 660-million Hazira LNG import terminal in Gujarat. The two firms may also look at setting up a C2 extraction plant at Hazira.

Mr Raha said that ONGC, which has a 20 per cent stake in the Sakhalin-1 project in Russia, was looking at possibilities of stake in Shell-operated Sakhalin-II and tieing up gas from the two projects to make its shipment viable.

8216;8216;Shell is not present in upstream business in India. This MOU will fulfil the gap,8217;8217; said Vikram Singh Mehta, chairman of Shell group of companies in India.

Raha said Shell may farm-in take equity in ONGC blocks and the two firm may jointly bid for exploration blocks in future rounds of new exploration licensing policy NELP. The two firms would also look at joint development of surface coal gasification scg projects to produce syngas for power using Shell8217;s proprietary process.