Mumbai: Indian Infrastructure Equipment Limited (IIEL), the equipment rental arm of SREI Infrastructure Finance Ltd, and Moscow-based Oil Technologies Overseas (OTO), have signed an MoU to jointly develop business in drilling and related services for the Russian and Indian oil and gas sectors.

This marks the entry of Quipo Oil and Gas, an Indian company, into the oil drilling services in Russia, through this JV. Quipo, a brand owned by IIEL, envisages an immediate requirement of five state-of-the-art drilling rigs for the joint venture and has begun the process of acquiring the rigs.

Under the s 'Quipo' brand, IIEL provides state-of-the-art equipment for a wide range of construction requirements. These are provided with value added services such as trained operators to run and service the equipment and on-site repairs and maintenance.

OTO is one of Russia''s leading energy services company specialising in the business of enhanced oil recovery, reservoir water management, production enhancement, well services including solvent solutions and side track / directional drilling.

Quipo is backed by blue chip investors such as IFC, Washington (a World Bank member company); FMO, Netherlands and and Swedfund International AB. FMO and Swedfund are both owned by their respective governments.

The two companies will complement each other through this joint venture. Whilst Quipo will support the JV through its financial and equipment strengths; OTO will support .

Quipo''s Indian venture by providing technology, training and specialised software support in the oil and gas industry.

Quipo, which started its oil and gas initiative in India in 2002, is designed to be a "holistic" infrastructure equipment rental company to serves the need of infrastructure industry for projects across the nation.

S K Mehta, managing director, Quipo Oil and Gashas substantial expertise in energy drilling operations, including successful completion of one of the deepest wells in Asia with a depth of 7,000 metres in the foothills of the Himalayas and project engineering consultancy for offshore & onshore drilling.

SREI already has a significant presence in the non banking financing sector through its subsidiary ZAO According to Sunil Kanoria, chairman and managing director, Quipo, "It will be our endeavour to build a successful drilling and services business along with our partners OTO. The Russian market offers huge opportunities and the two partners with their complementary strengths are well positioned to capitalise on these opportunities.

Vyacheslav Manyrin, chairman, OTO, says, "With a strong 'customer intimacy business model' and focus on ''operational excellence'', the JV will work towards establishing itself as the partner of choice for its customers."