ONGC’s arm inks deal with Rosneft

ONGC Videsh, the overseas arm of the state-owned explorer Oil and Natural Gas Corporation (ONGC), has signed a deal with Russia’s largest oil and gas producer Rosneft to jointly explore hydrocarbons in the offshore Arctic. The company has inked a Memorandum of Understanding at the St Petersburg International Economic Forum, in the presence of Russian President Vladimir Putin. The Memorandum pave the way for the companies’ cooperation in subsurface surveys, exploration and appraisal activities and hydrocarbons production in Russia’s offshore Arctic. ONGC is a premier oil and gas company in India, accounting for 71% of the country’s crude oil production and 54% of its natural gas production in 2011-12. It is also a significant producer of value added products such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. GoI is the majority shareholder in ONGC, with a 69% equity stake as of now.