The Hindu Business Line : Exploration and production activities — India, Japan agree to work together in third countries

INDIA and Japan on Thursday said that they would look at promoting ventures in the exploration and production (E&P) sector in third countries and also examine the possibility of `swap' arrangements based on the convenience of geographical proximity.

A joint statement issued after the meeting between the Petroleum Minister, Mr Mani Shankar Aiyar, and Mr Shoichi Nakagawa, Minister for Economy, Trade and Industry of Japan, in Tokyo, on Thursday, said the two nations would explore the prospects of such cooperation in Canada, Australia, West Asia, West and Central Africa, Russia (including Sakhalin) and Central and South East Asia, taking into account the increasing tendency by the oil and gas producing countries to pursue broader economic ties with investing countries.

Strengthening hydrocarbon ties: Bearing these possibilities in mind, a possible memorandum of understanding between ONGC Videsh Ltd (OVL) and Japan Oil Gas and Metals National Corporation (JOGMEC) is being considered, the statement made available here said.

The meeting between the two Ministers was with a view to accelerating, deepening and widening cooperation between India and Japan in the hydrocarbons sector, the statement said.

The two Ministers also expressed their determination to pursue the prospects of encouraging Japanese companies with such assistance as possible from the JOGMEC to develop exploration and production opportunities in India in addition to services and technology areas. The statement also said that the two countries would exchange information and experience on commercial and strategic stockpiling of crude oil.

R&D, commercial ties: They also agreed to promote cooperation in heavy oils amongst the entities concerned of both countries. India and Japan would also coordinate in reinforcing R&D in gas hydrates through encouraging cooperation between the Directorate General of Hydrocarbons of India and its Japanese counterpart, as well as commercial understanding between GAIL (India) and counterpart Japanese industries for the transportation of gas as synthetic hydrates, including examining the feasibility of transportation from isolated marginal fields.

The two countries also agreed to undertake joint research and study between a Japanese organisation and counterpart Indian organisations such as the Petroleum Planning and Analysis Cell (PPAC), TERI, and University of Petroleum and Energy Studies, Dehra Dun, on developing an Asian crude oil and petroleum products market and measures to stabilise the Asian oil market.

The two Ministers noted the importance of investing in each other's countries in the hydrocarbons and related sectors. India also invited Japan to consider investments in India in export-oriented refineries as well as in such projects as the development of a petrochemicals hub at Haldia.

They also expressed their intention to work together to promote integrated energy conservation and energy efficiencies in India through the ESCO (Energy Service Companies) model. The Petroleum Conservation and Research Association (PCRA) of India has been nominated by the Indian Minister as the nodal agency to work with its counterpart Japanese institutions for this purpose.

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