ONGC Videsh and YPF S.A, the major oil producing company of Argentina have entered into a Memorandum of Understanding (MoU) on Sept. 1, 2014 to cooperate in the hydrocarbon sector.

Under the MoU, the two companies will analyse the opportunities for cooperation in upstream sector in Argentina, India and third countries. The MoU also envisages collaboration in the areas of research and development and human resources.

Argentina is an important oil and gas producing country in Latin America. It also has excellent potential for unconventional oil and gas, particularly in the Neuquen Basin.

Shares of the company declined Rs 6.25, or 1.41%, to trade at Rs 438.35. The total volume of shares traded was 438,155 at the BSE (2.58 p.m., Wednesday).