ONGC, Shell Plan to Bid for Overseas Oil, Gas Assets

India’s Oil and Natural Gas Corp (ONGC) and Shell are mulling joint venture to bid for global oil and gas assets.

Economic Times reports that this move follows up on their discussions for a partnership in India's upstream and downstream sectors.

ONGC has been actively looking for partnerships with international firms. Since last year, it has signed memoranda of understanding with ConocoPhillips — for cooperation in shale gas and deepwater exploration in eastern India — and with Inpex Corp, Japan's largest oil company, for strategic partnership in exploration of hydrocarbons in the KG Basin. 

Experts say in case Shell and ONGC forge a comprehensive in India and abroad, it would help ONGC develop a strong foothold in the gas business, the newspaper said.

ONGC is keen to enter the liquefied natural gas (LNG) business, while Shell and France's Total already operate a 3.5 million tonne LNG terminal at Dahej, Gujarat. ONGC, Japanese energy firm Mitsui and BPCL  have also signed a pact to study the feasibility of setting up a $500-750-million LNG import terminal at Mangalore, Economic Times said.