GAIL signs pact with ITERA Oil & Gas Company of Russia

New Delhi: GAIL (India) Limited today signed a Memorandum of Understanding (MoU) with ITERA Oil & Gas Company of Russia for cooperation in projects ranging from participation in CNG projects in Russia, Gas based Petrochemicals opportunities in Russia, E&P opportunities in Russia and CIS countries and cooperation in other projects of mutual interests. The MoU was signed by Dr. U. D. Choubey, CMD, GAIL and Mr. Igor V. Makarov, Chairman of the Board, ITERA Oil and Gas Company LLC. Shri R K Goel, Director (Finance), GAIL, Shri Santosh Kumar, Director (Projects), GAIL, Shri B C Tripathi, Director (Marketing), GAIL and other senior officials of GAIL and ITERA were present on the occasion.

Speaking on the occasion, Dr. U. D. Choubey, CMD, GAIL said that this is a significant step to focus on GAIL’s competence in gas based petrochemical projects and CNG in Russia with a major private Russian company.

Mr. Igor V. Makarov, Chairman of the Board, ITERA Oil and Gas Company LLC described the signing of MoU as an important step in the direction of synergistic cooperation between the two companies not only at present but for future also.

ITERA is a large player in Oil & Gas Sector in E&P, Gas transmission & distribution, petrochemicals etc. in Russia and CIS. ITERA has been operating in various Oil & Gas E&P assets in Russia, CIS and other countries, apart from business interests in Gas to Petrochemicals, Pipelines etc.

About ITERA Oil and Gas Company LLC
ITERA Oil and Gas Company, established in 1992, is a member of ITERA International Group of Companies. ITERA works together with SUN Energy, the energy investment arm of the global investment firm, SUN Group. ITERA Oil and Gas Company undertakes projects located within Russia and CIS. For energy projects outside Russia and CIS, ITERA and SUN Group have formed a JV company, Suntera, which currently has assets in India and Nigeria.

ITERA deals in Exploration & Production of oil and Gas; Construction of gas / oil field facilities and delivery of gas to the Russia and CIS. ITERA is the first private company to put gas fields into operation in the Far North of Russia: ITERA has marketed over 400 billion cubic meters of gas. The Company produced over 120 BCM of natural gas in 1998-2007.

About GAIL (India) Limited
GAIL (India) Limited is India's largest natural gas company having a market share of 78% in natural gas transmission and 70% in natural gas marketing. Apart from natural gas transmission, distribution and processing, the Company has diversified business interests in LPG transmission, petrochemicals, city gas projects and exploration and production activities. The Company has presence in countries such as Egypt, Myanmar, China and Oman.

GAIL is one of the leading public enterprises with a consistently excellent financial track record. Turnover and Net Profits during the last ten years has shown a compounded annual growth rate of 14 per cent. The Company recorded a Turnover of Rs. 16,047 crore and Profit After Tax of Rs. 2,387 crore in the year 2006-07.

GAIL owns and operates around 6700 km of natural gas pipeline transmission network with a capacity of 148 MMSCMD and is laying five new natural gas pipelines measuring 5000 km. involving a capex of nearly Rs. 20,000 crore which shall enhance the transmission capacity to around 300 MMSCMD in 2011.

GAIL has equity participation in three retail gas companies in Egypt and in China Gas Holdings in China, participating interest in offshore blocks in Myanmar and one onland block in Oman. GAIL is pursuing business opportunities in regions such as South / South-East Asia, West Asia, Russia and Central Asian Republics and African continent in the areas of exploration and production, gas transmission, CNG and city gas distribution, LNG and petrochemicals. GAIL has set up a wholly- owned subsidiary company viz. GAIL Global (Singapore) Pte. Ltd. in Singapore.