Wednesday, January 11 2006 14:55 Hrs (IST) - World Time -

Beijing: Enhancing cooperation in the hydrocarbon sector, vital for the energy security of the two fastest growing economies in the world, will be high on the agenda of talks Petroleum Minister Mani Shankar Aiyar will hold with Chinese leaders.

Aiyar, who arrived here today for a two-day official visit to China, will meet his host, Chairman of the National Development Reform Commission (NDRC), Ma Kai tomorrow (Jan 12,2006) and hold wide-ranging talks.

A Memorandum of Understanding on Hydrocarbon Cooperation is expected to be signed by the two sides which will provide for cooperation across the hydrocarbon value chain, sources said.

The MoU provides for the setting up of a Joint Working Group on Hydrocarbon Cooperation at officials' level that will meet alternately in the two countries.

Besides this, at least five other MoUs will be signed during the visit between Indian and Chinese petroleum organisations.

The Minister will also address a select gathering of senior Government officials, corporate leaders and members of China's think-tanks.

He will also be visiting the Da-Gang onshore oil field, which is about 90 km from Beijing.

Aiyar's visit is taking place in the background of the fact that both countries have emerged as significant consumers of hydrocarbon resources over the last few years, official sources said.

Over the last one year, there have been a number of occasions when Indian and Chinese companies have publicly competed for the same assets such as in Angola, Kazakhstan and Ecuador. These instances of competition have frequently clouded strong Chinese interest in cooperating with India.

Official sources said the two sides have agreed to cooperate in the field of energy security and conservation, including, among others, encouraging relevant departments and units of the two countries to engage in the survey and exploration of petroleum and natural gas resources in third countries.