A relevant agreement between the companies was signed by Gazprom chief Alexei Miller and his Indian partner, Proshanto Banerjee.
The agreement reads that the two companies will look into the possibility of supplying gas to India and conduct the supplies, which will be the main sphere of their activities. Besides, under the agreement the companies can work together in the oil sector.
Gazprom and Gas Authority of India Limited will join efforts in many areas ranging from prospecting to the construction and maintenance of oil trunk lines, and in the sphere of gas processing and supplies of equipment for the oil and gas sector.
The companies will also study the possibility of prospecting and producing gas hydrate off the shores of India and extracting methane from coal beds.
The agreement also envisages cooperation in improving the skills of and re-training personnel, and exchanging experts.
The companies are expected to establish a steering committee to oversee activities under the agreement.
India's proven natural gas reserves are 850 billion cubic meters. India produces 30 billion cubic meters of gas annually, which is consumed domestically. The country's domestic demand for natural gas has been forecasted to rise to 37 billion cubic meters in 2005, while it will grow to 43 billion in 2006 and to 110 billion cubic meters by 2010.
India's proved oil reserves are 700 million metric tons. In 2003, the country produced 36.7 million metric tons, while oil consumption reached 113 million metric tons. Saudi Arabia, Nigeria, the United Arab Emirates and Iran are India's major oil suppliers.
Gazprom and Gas Authority of India Limited have worked together at Block 26 in the Bay of Bengal under the October 3, 2000 production sharing agreement and the June 7, 2001 bilateral working agreement. The agreement envisages prospecting activities, hydrocarbon production and sales.
The program of prospecting activities at Block 26 was drawn up for the period of 7 years.
