Thursday, January 12 2006 13:00 Hrs (IST) - World Time -

Beijing: Petroleum Minister Mani Shankar Aiyar today (Jan 12, 2006) kicked off his first visit to China with a series of meetings with CEOs of major state-run Chinese oil and gas firms to forge India-China cooperation in the hydrocarbons sector, vital for their energy security.

Aiyar, who arrived here yesterday for a two-day official visit, has started his meetings with senior executives of China National Petroleum Corporation (CNPC), China National Petrochemical Corporation (SINOPEC) and CNOOC, official sources said.

"We look on China not as a strategic competitor but a strategic partner," Aiyar told reporters here.

He noted that in the energy sector, it is astonishing how similar is the situation of China and India, with both having substantial coal resources but highly dependent on hydrocarbons, a substantial portion of which has to be imported.

"Given that we are facing similar challenges and that our response to these challenges respectively are almost exactly the same, there does appear to be considerable scope for cooperation along the entire integrated hydrocarbon value chain and is extending beyond into related sectors like petrochemicals," he said.

Aiyar will today have an official meeting with Chairman of the National Development and Reform Commission (NDRC) Ma Kai on wide-ranging issues concerning India-China cooperation in the hydrocarbons sector, which has witnessed some intense competition between the two Asian giants recently.

There have been a number of occasions when Indian and Chinese oil companies have publicly competed for the same assets such as in Angola, Kazakhstan and Ecuador.

A Memorandum of Understanding (MoU) on Hydrocarbon Cooperation between India and China is expected to be signed by Aiyar and Ma later today which will allow cooperation across the hydrocarbon value chain, including exploration and production, downstream projects, strategic storage and stockpiling, research and development, conservation, promotion of environment-friendly fuels.

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.

During the day, a number of MoUs will be signed between Indian and Chinese energy majors.

Aiyar's visit to China 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. This burgeoning demand for oil and gas resources, which is seen as crucial for the economic growth of the two countries, has led to the development of almost identical energy security policies by the two countries, official sources said.

The Petroleum Minister will be addressing a select gathering of senior Government officials, corporate leaders and members of China's think-tanks on the theme, "India and China in Asia's Quest for Energy Security."

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