The Agreement recognizes that widening and deepening of bilateral cooperation in the field of oil & gas sector will promote economic and commercial ties between the two countries including socio-economic development and energy security of the Russian Federation and India, which is inextricably linked to the availability, accessibility and affordability of oil and natural gas. The main features of the proposed Agreement are as under:

The Government of Russian Federation and the Government of India shall undertake bilateral cooperation in the oil & gas sector based on the principles of absolute sovereign rights over national oil and gas resources, non-discriminatory access to all to the international oil and gas markets, energy technologies & transfer of technologies and facilitating smooth flow of oil and gas resources to the international markets. It also envisages energy security for all in an interdependent world of consumers and producers of oil & gas with common responsibility of all parties – not only consumers and producers of oil and gas but also transit States for realizing the goal of global energy security.

The cooperation between the two countries shall be to promote cooperation on the territory of Russia, India and third countries in the field of exploration, production, transportation, refining, storage, sale and use of oil & natural gas; implementation of joint projects in the field of liquid natural gas, underground coal gasification, strengthening the partnership between the enterprises and organizations of both the States and exchange of information on national and international tenders in the field of oil & gas. Both the States shall encourage and promote cooperation through setting up of joint ventures for exploration, production, processing and transportation of oil & natural gas, use of technologies, equipment and materials produced in Russia, India and third countries, subject to economic feasibility and profitability and joint participation of economic enterprises of the States in national and international tenders for sale of energy resources, evaluation of projects for joint implementation through public and private enterprises of both the States, etc.

The Agreement does not limit the rights of Russian and Indian companies to independently establish trade, economic and scientific & technological relations and the rights and obligations flowing out of other international agreements entered into by Russia and India in the oil & gas sector. The responsibilities for implementation of this Agreement are with Ministry of Energy of the Russian Federation and Ministry of Petroleum & Natural Gas, India. The progress in the implementation shall be monitored by the India-Russia Working Group on cooperation in Energy under the ambit of India-Russia Inter Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation. The present Agreement will have duration of three years and come into force from the date of signing and will be renewed automatically for periods of equal duration.