ONGC, IOC sign joint production and marketing agreement
The memorandum of understanding (MoU) envisages the Oil and Natural Gas Corporation (ONGC) supporting Indian Oil (IOC) in exploration under India's New Exploration Licensing Policy, and IOC supporting ONGC for marketing its aviation turbine fuel (ATF). The two companies will also forge strategies for marketing of natural gas produced by ONGC. The MoU also incorporates IOC supplying high-speed diesel to ONGC for meeting the latter's operational requirements. The umbrella understanding, which also includes finalization of the long pending crude oil supply agreement (COSA), will facilitate development of mutually beneficial agreements in the identified areas of co-operation and provide a platform to resolve commercial issues between the two companies.