Indian Oil Corporation Limited (IOCL) and Oil and Natural Gas Corporation (ONGC) signed a memorandum of understanding (MoU) to explore downstream opportunities in petrochemicals, through greenfield projects and acquisitions.

The MoU and NDA (Non-disclosure agreement) was signed by Executive Director, Petrochemicals, (ED-PC), IOCL, Arvindar Singh Sahney, and Executive Director of Joint Venture and Business Development, ONGC (ED-JV&BD), Debdulal Adhikari.

The agreement aims to explore prospects in utilizing downstream business in ONGC and IOCL (including their subsidiaries) and setting up assets, if feasible. Both the Maharatnas aim to scour and harness possibilities for using feedstock from both the companies and their subsidiaries to manufacture petrochemical products. The companies seek to jointly discover and search for global opportunities to enhance value creation from exports of refining and petrochemical yields as well as explore opportunities for collaboration in oil to chemicals and/or niche products.

Sahney discussed pertinent matters affecting India's petroleum and natural gas industry. He spoke of the rapid energy transition from fossil fuels to electronic energy like hydrogen cells, and how it will significantly impact both companies. He, therefore, emphasized the importance of diversification and progressive methods of petrochemical use. Mr. Sahney also reminded the audience of the growing capacity of petrochemical production, which will increase three times in the next seven years, with an appetite for going beyond.

Adhikari highlighted the long-standing partnership between ONGC and IOCL. He spoke extensively about the importance and scope of the midstream and downstream sectors of the Indian petrochemical industry, and how this partnership between IOCL and ONGC can bridge the growing gap between the supply and demand of petroleum in the Indian market. ED JV&BD accentuated how ONGC and IOCL together can explore various opportunities to undertake valuable projects for the development of both the companies and the country.

Besides, Sahney and Adhikari, other dignitaries in attendance included ONGC’s ED-Chief Marketing Sanjay Kumar, ONGC’s ED-Head Strategy Satyan Kumar, ONGC GGM-Head Renewables HN Joshi, ONGC GGM(P) Ashok Kumar, ONGC Head-Support Finance Aniruddha Banerjee, ONGC Chief Legal Services Sandhya Yadav, MRPL CGM, Head Impex & Shipping Anil Dubey, and IOCL CGM (Petrochemical) S K Papeja.