India and Russia on Monday agreed that their oil and gas companies would work together for exploration and production activities in third countries.
One possible destination could be the oil-rich Central Asian economies, officials accompanying Prime Minister Manmohan Singh on his current visit to Russia said.
The scope of cooperation could extend to joint ventures as well as equity participation in such ventures. According to the officials, Indian firms will be invited to buy stakes in Russian oil and gas firms, which are going to be put on the block by Moscow.
The agreement was reached when Russian Energy and Industry Minister Viktor Khristenko called on the prime minister.
The Russian minister also welcomed India's participation in the Sakhalin III oilfields. India has been looking aggressively for overseas oil and gas assets because of its growing energy needs.
So far, ONGC Videsh Ltd, the overseas arm of ONGC, has bid for such assets on its own. However, it is learnt to be working on an agreement with China's CNPC to jointly bid for some energy assets in Africa.
It is worth noting that RS Butola, the managing director of ONGC Videsh Ltd, is accompanying the prime minister.
ONGC chairman Subir Raha had visited the country last week. India is also considering positively a Russian request to install more reactors at the Kudankulam nuclear power project in Tamil Nadu, considering India's growing need for power.
The delegation of Indian businessmen, which includes CII president YC Deveshwar and Ficci president Onkar Singh Kanwar, apprised the prime minister of the roadblocks in increasing Indo-Russian trade.
These include a lack of information on each other's markets, difficulties in obtaining business visas, weak financial base and a lack of transport links between the two countries.
