Tuesday, October 18 2005 13:48 Hrs (IST) - World Time -

Shanghai: The coming together of India and China in hydrocarbons sector will constitute a 'formidable presence' in the global hydrocarbons scenario, Minister for Petroleum and Natural Gas, Mani Shankar Aiyar has said.

"Given the technical, human and financial resources available in our companies at present, their (companies of India and China) coming together will constitute a formidable presence in the global hydrocarbon scenario," Aiyar says in 'India & China: Partnership in Energy Security,' a newly-released publication issued by the Ministry of Petroleum and Natural Gas here.

The release coincided with the third 'Made in India' (MII) show where major Indian hydrocarbon companies are represented for the first time under one umbrella.

"The participation of my Ministry and our oil companies is both important and timely because India-China cooperation in this sector is crucial for the energy security quest for both our countries," Aiyar writes in the publication released at the MII, organised by the Confederation of Indian Industry (CII).

"I am confident that the MII show will play an important role in bringing the representatives of our industry together and will set the stage for the long-term partnerships to which we are committed," the Minister says.

"Indeed it would not be an exaggeration to say that a joint India-China offer would be found attractive across the world," Aiyar, who is expected to visit China in November, says.

He writes that India's economic development is critically dependent on the availability of hydrocarbon resources, which provide the fuel for growth.

"We are required to explore and produce these resources in our own countries as also seek overseas. Indian and Chinese companies can support each other in both these efforts: they can participate in exploration and production (E&P), midstream and downstream projects in each other's countries as also jointly participate in projects in third countries," he says.

Quoting experts, he notes that while hydrocarbon resources are available to meet global demand over the next 30 years or so, these resources will be increasingly discovered in physically challenging areas such as in the deep sea, in icebound terrain, and in environmentally sensitive areas.

The exploitation of these resources will require new technological capabilities as also huge financial resources going up to a few trillion US dollars, Aiyar said.

"The harnessing of these mammoth resources demands a regional and even a global effort. Partnership between India and China will be a significant part of this endeavor," he says.

Apart from the Ministry of Petroleum and Natural Gas, the MII has attracted Indian hydrocarbon giants like Indian Oil Corporation, GAIL (India) Ltd., and ONGC.