Gazprom in Talks with Oil India for Joint Projects

MOSCOW – OAO Gazprom may enter two upstream projects with Oil India Ltd., the Russian state gas monopoly said Monday.

The two companies are in talks about a joint operation of the two projects, one offshore and one onshore, that are located in India, Gazprom said.

"They have invited us to be co-operator on two gas projects," a Gazprom official said.

Oil India is an Indian state energy company. An official from the company, who didn't wish to be named, said it is in talks with Gazprom to offload a stake in two onshore blocks: a Mizoram block in northeast India and a Krishna Godavari onshore block in southern state of Andhra Pradesh.

The official said Oil India holds about 80% stake in KG block and 75% stake in Mizoram block.

"They just discussed with us--nothing has been finalized so far," the Oil India official told Dow Jones Newswires over telephone in New Delhi.

India's upstream regulator, the Directorate General of Hydrocarbons, auctions exploratory blocks. The companies usually participate in consortia to reduce risks.