India's Oil and Natural Gas Corp, known as ONGC, and China National Petroleum Corp, or CNPC, will renew a co-operation pact in areas such as exploration, an Indian oil ministry official said.
The energy-hungry Asian nations, widely blamed for a record rise in oil prices, usually compete for stakes in foreign oil and gas projects to secure supplies, Reuters reported.
But their rapid emergence as economic superpowers has helped form a strong foundation for greater co-operation.
"Although we are rivals, the interests of India and China converge when it comes to hydrocarbons. With ONGC, they (CNPC) will sign an MoU (Memorandum of Understanding)," the official told reporters on Monday, according to the news wire.
He said the agreement, to be signed Tuesday, would be a renewal of a two-year-old pact between the companies.
It comes after officials of CNPC met India's oil minister S. Jaipal Reddy and officials from ONGC's overseas investment arm ONGC Videsh, refiner Indian Oil Corp and gas utility GAIL (India) Ltd.
Chinese and Indian oil firms are already working together on schemes in Syria and Sudan as the two nations seek reserves to feed their large economies, which require ever-increasing supplies of imported oil.
