India's OVL Signs Deal With Rosneft for Exploration Offshore Arctic

ONGC Videsh Ltd (OVL), the overseas arm of the India’s state-owned ONGC, has signed a deal with Russia's Rosneft to jointly explore oil and gas in the offshore Arctic, OVL said in a statement Saturday.

Igor Sechin, President and Chairman of the Management Board, Rosneft and Dinesh Kumar Sarraf, Chairman of the Board of Directors, ONGC Videsh Ltd and Chairman & Managing Director, ONGC signed a Memorandum of Understanding at the St. Petersburg International Economic Forum, in the presence of Mr. Vladimir Putin, President of the Russian Federation.

"The Memorandum paves the way for the companies' cooperation in subsurface surveys, exploration and appraisal activities and hydrocarbons production in Russia's offshore Arctic," the Indian firm said.

The parties will jointly consider forming a consortium led by Rosneft and involving other partners.

Earlier this year, during Sechin's visit to India, the Russian firm had offered OVL a stake in nine offshore oil and gas blocks in the Barents Sea and one in the Black Sea.