ONGC Videsh Signs Global MOU to Bolster Critical Mineral Supply Chain

ONGC Videsh, Oil India Ltd., and KABIL, in partnership with UAE's IRH, have signed an MOU to strengthen the global supply chain for critical minerals. The agreement aims at identifying, acquiring, and developing key mineral projects globally to secure a steady supply of essential minerals for India's energy and manufacturing sectors.

ONGC Videsh, a Schedule 'A' Navaratna Central Public Sector Enterprise, along with Oil India Ltd. (OIL) and Khanij Bidesh India Ltd. (KABIL), has inked a Memorandum of Understanding (MOU) with UAE-based International Resources Holding RSC Ltd. (IRH). The agreement, as per ONGC, focuses on a robust global collaboration to enhance the supply chain of critical minerals vital for the energy and manufacturing sectors.

The MOU establishes a comprehensive framework for identifying, acquiring, and developing critical mineral projects on a global scale and within India. The primary objective is to leverage the combined expertise, resources, and networks of all parties to secure a stable and reliable supply of these essential minerals. This cooperation is designed to pursue mutually beneficial opportunities, achieve operational excellence, and ensure long-term access to critical energy minerals.

This strategic partnership will adopt a cooperative and coordinated approach, concentrating on several key areas including project identification, joint due diligence, risk management, and developing a long-term offtake strategy. This collaboration is anticipated to open new avenues for securing India's energy needs and supporting the nation's efforts to enhance its mineral resource base. ONGC Videsh Ltd., a wholly owned subsidiary of Oil and Natural Gas Corporation (ONGC), is India's largest international Oil and Gas Exploration and Production (E&P) company.

Operating in 15 countries and managing 32 assets globally, ONGC Videsh significantly contributes to the country's energy security. In FY'24, ONGC Videsh produced 10.518 million metric tonnes of oil and oil equivalent gas (O+OEG) and presently has a daily output of around 200,000 barrels of O+OEG. As of 1 April 2024, ONGC Videsh holds total oil and gas reserves of about 476 million metric tonnes of oil equivalent (MMtoe), with its parent company ONGC possessing reserves of 704 MMtoe.

(With inputs from agencies.)