India and China plan joint working group for oil sector

In a significant development in the global oil and gas sector, India and China, two major consumers of petroleum products, decided to set up a Joint Working Group (JWG) to monitor and forge bilateral co-operation in the sector.
“There will be a Memorandum of Understanding (MoU) between India and China in terms of which a JWG will be set up to monitor and pursue bilateral cooperation,” additional secretary (international cooperation) in ministry of petroleum and natural gas, Talmiz Ahmad said.

Mr Ahmad, who heads the taskforce constituted by the ministry, said Indian and Chinese petroleum and gas companies will enter into separate MoUs to pursue co-operation bilaterally as well as in third countries.
“Basically it was the first encounter between India and China to discuss co-operation in the hydrocarbon sector. It is a pioneering effort and we seem to have found a common position. I think we are on the right track,” Mr Ahmad said on the day-long meetings with senior Chinese officials as well as oil industry executives.

He said both sides agreed to enhance Research and Development (R&D) Sector where the two countries will take up joint projects. The meeting also explored whether the two countries could exchange students for training.
“We hope to exchange, through diplomatic channels, draft MoUs, to be signed sometime later in the year,” the minister, who led a six-member delegation of major Indian oil industry officials, said. The first-ever dialogue on the hydrocarbons sector took place in the context of the joint statement issued by India and China during Chinese Premier Wen Jiabao’s state visit to India in April, he said.