IOC and Enron India signed a Memorandum of Understanding in New Delhi on Wednesday, to develop cooperation in the fields of energy and communications, Enron sources said. IOC and Enron would also consider joint participation in liquid fuel pipelines and the distribution for liquid fuels through the Dabhol plant, they said.

A "Most Preferred Customer Status" would be provided by IOC for supply of liquid fuels, lubricants and greases to Enron and its customers in India, the sources said.

The oil major also plans to become a strategic partner in the E-commerce marketplaces being developed by Enron for petroleum products in the country. Both the companies are considering cooperation through pooling of resources, infrastructure and other services, the sources said adding the parties would enter in definitive agreements in this regard over next several months to finalise implementation of these businesses. Meanwhile, IOC said in a statement from New Delhi, tha tit had entered into an agreement with Enron to collaborate in energy and communication business. As per the Memorandum of Understanding (MoU), IOC and Enron will collaborate in a series of oil and gas projects with Dabhol as the nodal point, the statement said. The ventures will include sourcing, storage and handling/processing, pipeline transportation and distribution and marketing in Maharashtra and hinterland states, it said.

IOC will offer`Most Preferred Customer' status to Enron Group for sourcing of liquid fuels, lubricants and greases, the statement said.The global strategic alliance between the two Fortune 500 companies will allow IOC to bring innovative solutions in the energy and communications business to the Indian market, it added.