Oil & Natural Gas Corporation, the country's biggest energy explorer, has signed a memorandum of understanding with Indian Oil Corp for oil and gas exploration, production and marketing.

Under the arrangement, ONGC will support IndianOil, the nation's biggest refiner, in search for oil in fields auctioned in the country.

In addition, the two companies will also cooperate in the production and marketing of oil and gas.

The shares of ONGC and IOC were closed on Friday at Bombay Stock Exchange at Rs 646 and Rs 387.