ONGC Videsh Ltd and Russian gas major Gazprom will jointly take up upstream oil and gas projects in Russia, India and other countries.
The two companies initialled a memorandum of understanding on Saturday which will be signed later this month in Moscow.
The MoU will enable OVL to broaden its presence in Russian oil and gas sector while Gazprom would register its presence in the growing gas market of India along with Oil and Natural Gas Corporation, said a company release. The two sides would also also cooperate in a few strategic hydrocarbon provinces of the world.
Officials said the MoU could also include joint bidding for the assets of troubled Russian company Yukos. Russia is selling Yukos's main oil producing unit, Yuganskneftegaz, and has set $8.65 billion as the starting price for the auction on December 19.
The MoU will be signed at official ceremony in Moscow by Gazprom chairman A Miller and ONGC chairman and managing director Subir Raha.
Russian president Vladimir Putin has welcomed bids by Indian companies for Yukos. Yugansk produces one million barrels per day of oil or over 60 per cent of Yukos output.
Petroleum minister Mani Shankar Aiyar is likely to make a second trip to Russia in January-February.
