ONGC Inks Deal with Halliburton

Close on the heels of its MoU with Baker Hughes, ONGC entered into another tie-up with Halliburton Offshore Services, to get easy access to Halliburton's technologies, experiences, expertise, management processes and practices of application in ONGC's fields and Institutes.

The MoU was entered on January 18, into during the Petrotech-2005, utilizing the presence of a large number of delegates from Halliburton, who witnessed the endorsement of the Understanding, endorsed by ONGC's Director (Exploration) Mr. Y B Sinha and Halliburton's Vice President Mr. Marc Mccurley.

Termed as 'Value-based Commercial Alliances', these linkages try to set up flexible business models where ONGC gets a 'Most Favored Client' status and the other party (Halliburton or Baker Hughes in these cases) gets a 'Most Preferred Partner' status.

ONGC has been pitching for such broad corporate strategic alliances with globally-established service-providers, especially in the last few years, as that has been the global norm in the Oil industry around the world.

Mr. Abdallah S Jum'ah, the President and CEO of Saudi Aramco, the Oil & Gas Company with the highest reserves in the world, also highlighted the importance of relationships in the Oil and Gas business, in his address in the Petrotech-2005. "We manage our relationships as we do our reserves".

Last year, there was another such tie-up with Schlumberger. Experts believe that such alliances bring in the much-required win-win partnership approach in business, in contrast to the traditional client-contractor relationship, which is too adversarial to bring in optimal benefits to the contracting parties.