The two energy companies will look into long-term supply contracts for the sale and purchase of crude, refined petroleum and petrochemical products to create secure and competitive energy sources for the Indian market.
Both the entities also hope to utilize their affiliates in this strategic alliance, namely; Mangalore Refinery and Petrochemicals Ltd. (MRPL), ONGC Petro-additions Ltd. (OPaL) and ONGC Mangalore Petrochemicals Ltd. (OMPL) of ONGC and Aramco Trading Company (ATC) of Saudi Aramco.
They also look forward to exploring low carbon energy demand and supply as part of this strategic alliance.
The MoU was signed by ONGC Chairman and Managing Director (CMD) Subhash Kumar and Saudi Aramco Senior Vice President of Downstream Mohammed Yahya Al Qahtani on Thursday. The signing ceremony took place at the Saudi Arabia Pavilion at Dubai Expo 2020.
Speaking on the occasion, Kumar said: "This MoU further strengthens our bilateral energy relationship, which is one of the cornerstones of the solid historical ties between India and Saudi Arabia. This collaboration will bolster companies' capabilities, leveraging our respective in-house competencies while creating value for all stakeholders and offering a framework for expanding the cooperation in other energy-related areas."
Mohammed Yahya Al Qahtani said: "This ceremony is a testament to the strong and valuable relations between our economies, our countries and our people. India is a strategic and significant market of the Kingdom and we look forward to enhancing our synergies by providing mutually-beneficial opportunities through our global-scale trading network and system with a competitive offering. We hope this will open more areas of collaboration in the future to expand our global footprint."
ONGC and its affiliates have a significant presence in exploration and production, domestic refining, petrochemicals, power and renewables in India. ONGC Group has a diversified line of business such as pipelines, LNG re-gasification terminals and a number of subsidiaries and joint ventures in energy-related businesses.
Saudi Aramco is a leading integrated energy and chemicals company engaged in oil exploration, production, transportation, refining, logistics, power generation and marketing of crude oil, petroleum and petrochemical products, with a strong network of affiliates and joint ventures.