Gazprom and ONGC sign Addendum to Memorandum of Understanding

According to the Addendum, the parties will explore the possible ways of cooperating within the integrated LNG project based on the Yamal Peninsula fields located in the Russian Federation.
The Addendum extends the effective period of the Memorandum and predetermines the elaboration of the relevant agreements between the companies.
India with its proven natural gas reserves amounting to 1.09 trillion cubic meters occupies the fifth place in Asia after Indonesia, Australia, Malaysia and China. 70 per cent of these reserves are located in offshore fields of the Bombay High Basin and the state of Gujarat.
India’s Petroleum and Natural Gas Ministry controls and regulates oil and natural gas production and processing, oil derivatives and gas distribution, as well as oil and oil derivatives export and import.
India’s Oil & Natural gas Corporation (ONGC Group) is the largest state-controlled company in terms of proven reserves and hydrocarbons production. ONGC is mainly focused on oil and gas exploration, development and production. The Indian government holds a 84 per cent stake in the company.
The Memorandum of Understanding between Gazprom and ONGC Group was signed on February 21, 2005 in Moscow. The document stipulates cooperation in the following sectors:
    * creation of capacities for deep processing of natural gas, oil and other hydrocarbons in Russia, India and third countries;
    * arranging deliveries of petrochemical products to the markets of Asia-Pacific and South Asian countries, primarily to India;
    * engineering, construction and operation of gas trunklines and underground gas storage (UGS) systems;
    * development of sci-tech cooperation in the main sectors of the gas industry;
    * cooperation in personnel training, career development and retraining.
The parties set up a Joint Working Group for the Memorandum execution.
The Yamal Peninsula is a region of Gazprom’s strategic interests. Commercial development of  Yamal’s fields will raise local gas production up to 310–360 billion cubic meters per annum by 2030. Accessing Yamal is of principle significance for securing gas production buildup in Russia.
11 gas and 15 oil, gas and condensate fields with approximately 16 trillion cubic meters of explored and preliminary estimated gas reserves (ABC1+C2) and nearly 22 trillion cubic meters of in-place and forecasted gas reserves (C3-D3) have been discovered on the Yamal Peninsula and in the adjacent offshore areas. Condensate reserves (ABC1) are estimated at 230.7 million tons and those of oil – at 291.8 million tons. In terms of gas reserves (ABC1+C2), the Bovanenkovo field is the most significant one on the Yamal Peninsula (4.9 trillion cubic meters).