Memorandum of Understanding between the National Development and Reform Commission of the People's Republic of China and the Oil and Gas Ministry of the Republic of India on Joint Exploration, Development, and Acquisition of Oil and Gas Resources in Third Countries.

This Memorandum of Understanding was reached according to the Memorandum of Understanding on Enhancing Cooperation in the Field of Petroleum and Natural Gas signed by the two parties on January 12, 2006 in Beijing, for the purpose of joint exploration, development, and acquisition of oil and natural gas resources of third countries. The cooperative areas may include:   1. encourage cooperation between enterprises of the two countries in the world oil trade and transportation;   2. Encourage companies from both countries to jointly explore and develop oil and gas resources in third countries, including joint bidding and the establishment of joint ventures;   3. Encourage companies and institutions of the two countries to carry out bilateral cooperation in oil and gas industry equipment in third countries; etc.
The two Parties support and encourage oil enterprises of the two countries to cooperate in the form of independent negotiations. In order to achieve the objectives of the Memorandum of Understanding, the two Parties should establish a joint working mechanism.