The Hindu Business Line : India, Turkey sign MoU for oil exploration

The Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, exchanging documents with the Turkish Minister for Energy & Natural Resources, Dr Hilmi Guler, in the Capital on Thursday. - Kamal Narang

New Delhi , Nov. 24

TO ENCOURAGE and promote bilateral cooperation in developmental issues in the oil and natural gas sector, India and Turkey on Thursday inked a memorandum of understanding.

The areas of cooperation between the two countries include tie-ups between companies in undertaking exploration and production (E&P) initiatives in Turkey and bidding by Turkish companies in various New Exploration Licensing Policy (NELP) rounds for participating in the Indian E&P sector.

According to the MoU, India and Turkey would undertake joint studies and partnerships to secure oil and gas supplies of the two countries by investments in third countries. The two nations agreed that Caucasian, Caspian/Central Asian, South-East Asian, and African opportunities constitute the high priority areas for such cooperation.

It was also agreed to encourage execution of large engineering and construction contracts including oil and gas pipeline projects in Turkey, India and third countries by Turkish and Indian companies. The two also agreed to encourage taking up of LNG-refinery projects by Turkish and Indian companies in Turkey, India and third countries.

Apart from these, the two also agreed to participate in basic and applied research and development regarding oil and natural gas issues.

As per the MoU, the two countries would set up a joint working group (JWG) within a month to coordinate the cooperation activities. The Secretary of the Ministry of Petroleum and Natural Gas and the Undersecretary of the Ministry of Energy and Natural Resources of the Republic of Turkey would head the JWG.

The first meeting of the JWG would be held within three months from the date of execution of the MoU. Further, the JWG would establish committees, with specific task force and exchange opinions on the overall perspectives and bilateral cooperation.

Leading the Indian delegation was the Petroleum Minister, Mr Mani Shankar Aiyar, and Mr Mehmet Hilmi Guler, Energy Minister of Turkey headed the Turkish delegation.

Meanwhile, Indian Oil Corporation (IOC) today said that it may build a refinery in Turkey along with Calik Enerji, as it seeks to sell fuels in the eastern European country. ``We expect to sign an agreement by December in which we will finalise details of the refinery,'' the Indian Oil Chairman, Mr Sarthak Behuria, said. The refinery may be able to process 120,000 barrels of crude oil a day, Mr Behuria said.

The overseas arm of Oil and Natural Gas Corporation, ONGC Videsh Ltd, would bid for oil fields in the Far East and Africa along with Turkish Petroleum Corporation, Mr Osman Saim Dinc, President of the Ankara-based company, said. Turkish Petroleum may also bid for oil fields in India, Mr Dinc said.

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