New Delhi, Oct 17 (NationPress) Minister of Petroleum and Natural Gas Hardeep Singh Puri announced on Friday that India and Brazil have reached an agreement to enhance their collaboration in oil exploration and production. Indian upstream oil companies, including ONGC, are anticipated to take part in forthcoming offshore ventures in the Latin American nation.

During a recent meeting with Geraldo Alckmin, Vice President and Minister of Development, Industry, Trade and Services of Brazil, Minister Puri expressed satisfaction with the ongoing energy partnership between India and Brazil. The dialogue highlighted the significant bilateral trade in hydrocarbons, long-term crude supply agreements with Petrobras, and Indian investments exceeding USD 3.5 billion in Brazil’s upstream sector, marking it as India’s prime investment hub in the Americas.

Furthermore, discussions included collaborative opportunities in exploration and production, India’s involvement in upcoming offshore initiatives, and shared prospects in deep and ultra-deepwater activities.

Cooperation in the transition to clean energy, including biofuels and ethanol blending, was also a topic of conversation, with both countries continuing to lead joint efforts under the Global Biofuels Alliance, Puri added.

Having previously served as India’s Ambassador to Brazil from 2006 to 2008, Puri expressed delight in reconnecting with the country, emphasizing his enduring ties and professional relationship, particularly in the energy sector.

Brazil stands as India’s largest trade partner in South America.

During Prime Minister Narendra Modi’s recent state visit to Brazil, both leaders agreed to set up a Ministerial-level Review Mechanism to enhance trade and investment, targeting a bilateral trade goal of USD 20 billion over the next five years, according to a joint statement released on Thursday.

Additionally, India and Brazil have committed to a significant expansion of the agreement between India and MERCOSUR member states, aiming for a considerable share of bilateral trade to benefit from tariff preferences, as stated in the announcement.

The agreement with MERCOSUR, which includes Brazil, Argentina, Bolivia, Paraguay, and Uruguay, was signed on June 17, 2003, to bolster relations and promote trade expansion.

According to the joint statement, the agreement’s expansion should address both tariff and non-tariff issues pertinent to trade and economic partnership.

The next phase of this initiative involves establishing a technical dialogue between the parties, including a meeting of the Joint Administration Committee under Article 23 of the preferential trade agreement at the earliest mutually agreeable date, with the intention of defining the scope of the expansion, the statement continued.

All parties are encouraged to complete the negotiations within one year of initiating discussions, as highlighted in the joint statement.