India's largest private oil company Reliance Industries has signed a memorandum of understanding with Gas Authority of India Limited for cooperation in petrochemicals.

As part pf the agreement, Gas Authority of India Limited (GAIL) and Reliance Industries (RIL) are to explore opportunities for setting up petrochemical complexes outside India in feedstock rich countries.

According to Reliance, opportunities that are identified would be examined by a working group, consisting of representatives from both the companies. The companies are to create a special purpose vehicle for setting up petrochemical complexes outside India.

The working group is reportedly looking at the Middle East and Russian markets for opportunities. In addition, the two companies could also expand mutual cooperation to the domestic market.

Mukesh Ambani, chairman and managing director of RIL, said: GAIL and RIL are India’s leading companies in the energy and infrastructure sector. The decision will enable us to look for opportunities globally on a competitive scale for the petrochemical business which will further strengthen India’s position on the global map.