Oil India Limited (OIL) and GAIL India Limited (GAIL) have signed a Memorandum of Understanding (MoU) aimed at enhancing cooperation across the natural gas value chain. The partnership is designed to unlock synergies that will boost domestic gas availability, improve access to demand centres, and advance India’s transition to cleaner energy.
Strategic Collaboration
The MoU was formalised by senior executives of both companies in the presence of top officials from the Ministry of Petroleum & Natural Gas (MoPNG), including the Secretary, Additional Secretary, and Joint Secretary.
- MoPNG Secretary: Called the agreement a “timely step” to expand domestic gas supplies and ensure wider energy access.
- GAIL CMD: Highlighted how the partnership will enhance energy security and support India’s clean energy vision.
- OIL CMD: Framed it as a strategic move to combine OIL’s upstream capabilities with GAIL’s marketing and distribution expertise.
Boost for Gas-Based Economy
The collaboration aligns with the Government of India’s goal of building a gas-based economy, reducing dependence on coal and oil while strengthening sustainable energy adoption. The MoU will also support nationwide infrastructure for natural gas delivery.
OIL’s Exploration Momentum
Separately, Oil India recently announced the discovery of natural gas in its Vijayapuram-2 exploratory well in the Andaman Shallow Offshore Block, under the Open Acreage Licensing Policy (OALP).
- Intermittent inflows during testing confirmed the presence of natural gas.
- Isotope studies are underway to evaluate hydrocarbon potential and long-term viability.
This discovery adds momentum to OIL’s exploration portfolio, potentially contributing to India’s domestic energy supply in the future.
Summary
Oil India and GAIL have signed an MoU to collaborate across the natural gas value chain, enhancing domestic supply and supporting India’s cleaner energy transition. The partnership combines OIL’s upstream strengths with GAIL’s marketing expertise. Meanwhile, Oil India’s recent Andaman gas discovery underscores its growing exploration success. Together, these developments mark a step forward in India’s journey toward a gas-based economy.
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