After forming a joint venture with the LN Mittal Group for oil and gas (O&G) exploration and production (E&P) activities abroad, the state-owned Oil and Natural Gas Corporation (ONGC) has now tied up with the Hinduja Group for joint collaboration in O&G projects in India and overseas.
Confirming the development, Hinduja Group president, Gopichand P Hinduja told FE, "We have signed a memorandum of understanding (MoU) with ONGC for joint collaboration in the O&G sector for India and overseas projects. This MoU entails synergy and growth for both sides."

ONGC is also reported to be in talks with the Khemkas for E&P activity. Analysts believe ONGC hopes to leverage Hindujas' presence in the Gulf region to pick up equity stakes in the E&P assets the region. "The Cabinet Committee on Economic Affairs (CCEA) had shot down ONGC's proposal to pick up stake in a Nigerian oil and gas field on the grounds of the "risk element" involved. MoUs like the ones wit the Hindujas and the Mittals will help ONGC acquire overseas assets with reduced risk and investment," he added.

Hindujas are also planning to source liquified natural gas (LNG) from Iran. Says Mr Hinduja, "We are in talks with a few of the LNG suppliers in Iran to bring LNG to India."

Both Hindujas and ONGC are also planning to jointly promote, develop and invest in LNG terminals with associated power, petrochemicals, gas pipeline grid projects and related opportunities in southern India.

The cost of all these projects is pegged at Rs 25,000 crore. Meanwhile, the Hinduja Group, through one of its group companies Ashok Leyland Project Services Ltd (ALPS) has joined hands with gas infrastructure major GAIL India Ltd for compressed natural gas (CNG) projects.

Both companies would jointly bid for projects in India and overseas in countries like Iran, Indonesia, Philippines, Malaysia and South Africa where complementary capabilities of either or both GAIL and ALPS would be a significant advantage.

In the O&G sector, the Hinduja Group is active in India since 1993 with lubricants maker Gulf Oil, which has a market share of over 5%