GAIL, ONGC sign MoU for formation of JV

A Memorandum of Understanding (MoU) for formation of a Joint Venture was signed between GAIL (India) Limited and ONGC on 24th of July, 2007. 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.

As per 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. According to the top management of both the companies 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.

Dr. U D Choubey, CMD, GAIL and Shri R S Sharma, CMD, ONGC look on as Shri A K Purwaha, Director (Business Development), GAIL and Dr. A K Balyan, Director (HR & BD), ONGC exchange documents after signing of MoU for formation of Joint Venture in New Delhi today.