Gail India and OIL to Bid Jointly for Exploration Blocks

On Dec. 27, 2007, Gail India Ltd and OIL India Ltd signed a Memorandum of Understanding (MoU) for joint cooperation in various business areas.

As part of the agreement, the two companies will jointly participate in the potential blocks, mainly onshore and offshore blocks in the forthcoming NELP VII bidding round. The two Companies will also examine the possibility of joint bidding for overseas exploration blocks and also securing farm-in options in already awarded exploration blocks in India and abroad.

Considering the likely discovery of gas by OIL from its E&P blocks and Gail's vast geographical spread of its existing and planned gas transmission networks and its experience in marketing of gas, the two companies will explore cooperation in transportation and marketing of OIL's share of gas from new discoveries through Gail's existing pipeline network and new infrastructure being created / planned by Gail. Furthermore, Gail and OIL may consider examining joint participation in gas pipeline projects abroad including transnational gas pipeline projects.

The two companies have considerable technology and knowledge bank developed over the years and they will cooperate with each other in sharing technology and knowledge wherever feasible in mutual interest through training of personnel in areas such as E&P, pipeline and City gas / CNG operations.