In a move that will reinforce US oil major Chevron’s ties with domestic oil and gas biggie Reliance Industries Ltd, the two may jointly bid for the upcoming auction of Russia’s bankrupt oil company, Yukos. RIL has for long been strategising an entry into oil- and gas-rich Russia.

Chevron CEO David O’Reilly is on a four-day visit to India beginning Tuesday and will spend two days with Reliance group chairman Mukesh Ambani to discuss and explore new areas of collaboration. O’Reilly will also meet petroleum minister Murli Deora during his visit.

Yukos’ assets, including fields with a total production capacity of 4.7-lakh barrels of oil per day and two oil refineries, will be liquidated over the next few months through a series of auctions. The final valuation of assets is due to be completed by February end, after which bidding will formally begin.

Sources said Reliance and Chevron agreed earlier to jointly undertake exploration and production, and refining projects in third countries. The agreement envisages picking up stakes in their existing global ventures and exploring new business opportunities.

In addition, the two are also expected to discuss joint bidding in oil and gas blocks in India to be offered shortly under the seventh round of the New Exploration & Licensing Policy (Nelp-VII). A cooperation pact for application of Chevron’s technology on a proprietary basis in deepwater blocks (to develop Reliance’s D-6 oil and gas block in the KG basin), besides collaboration in new technologies such as hydrogen fuel cells and bio-fuels, may also be signed. Reliance has already announced its D6 discovery of oil and gas reserves as commercial.

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