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ONGC and Hindujas formalize pact to pursue LNG, Oil and Gas opportunities

New Delhi November 07, 2006

Oil and Natural Gas Corporation Ltd. (ONGC) and Hinduja Group, today at New Delhi, signed a Memoranda of Understanding to form Joint Ventures to pursue global opportunities in Liquefied Natural Gas (LNG) and linked E&P business. The collaboration will leverage the E&P expertise of ONGC and the business-relationship advantage of the Hinduja Group in the hydrocarbon-rich Middle East, with business prospectivity benefits to both entities.

The Memorandum of Understanding between ONGC and Ashok Leyland Project Services provides for sourcing of Liquefied Natural Gas at competitive terms, to be facilitated by ALPS. Pursuant to such sourcing, ALPS will be invited to participate in joint development of LNG-based downstream projects at Mangalore SEZ – like LNG-regasification, Power, Petrochemicals, as conceptualized by ONGC Group.

The parties will form Joint Ventures/unincorporated Joint Ventures, whose equity structure is expected to be ONGC-49.98%, ALPS-48.02%, FIs/Banks-2%, with the majority ownership remaining with ONGC.

Speaking on the occasion, Chairman and Managing Director of ONGC R S Sharma wished the venture all success and hoped that the combined strength of both entities will help provide fillip to the energy security of the Nation. Sanjay Hinduja, representing the Hinduja Group, said that the Joint Venture, once formed, shall aim to bring concrete results as envisaged in this collaboration.

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