GAIL, ONGC sign MoU for formation of JV

Gail India Ltd has announced that the Company and ONGC on July 24, 2007 signed a Memorandum of Understanding (MoU) for formation of a Joint Venture. The MoU was signed by Shri. A K Purwaha, Director (Business Development), GAIL and Dr. A K Balyan, Director (HR and BD), ONGC in the presence of Shri. R S Sharma, CMD, ONGC, Dr. U D Choubey, CMD, GAIL, Directors of GAIL and other senior officials of GAIL and ONGC.

Under the MoU, the two Companies have agreed to come together through Joint Venture approach for monetizing the gas reserves discovered by ONGC in KG and Mahanadi basins. The Joint Venture approach will enable production, processing, transportation, distribution and marketing of gas from new sources to identified markets. The JV will synergise the respective production, transportation and distribution strengths of ONGC and GAIL.

The two Companies will set up a Joint Working Group (JWG) to work out a suitable action plan and for implementing the same.

ONGC has discovered huge gas reserves in the KG and Mahandi basins on the east coast of India.

GAIL is a leading natural gas transportation company with over 6100 km of natural gas pipelines in the country.

Source : Equity Bulls

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