The deal will see the Indian government make an upfront payment for crude purchase to Nigeria, to be repaid on the basis of firm term crude contracts over some years.
According to the minister, who is currently on a three-day visit to India, the deals from the negotiations will involve Indian public sector companies collaborating in the refining sector as well as exploration and production activities on a government-to-government basis.
According to a statement released by the ministry of petroleum resources, the minister concluded talks on the investments in Nigeria’s oil and gas sector.
Kachikwu revealed this after a bilateral meeting with Shri Pradhan, Indian minister of petroleum and natural gas.
Both ministers noted the existing and significant engagement between the two countries in the hydrocarbon sector, while acknowledging that Nigeria is one of India’s largest trading partners in Africa, which is dominated by import of crude oil and gas from Nigeria.
In 2015-16, India imported nearly 23.7 MMT of crude (nearly 12% of India overall imports) and over 2 MMTPA of LNG from Nigeria.
Following this negotiation, the two countries agreed to work on a Memorandum of Understanding (MoU) to facilitate investments by India in the Nigerian oil and gas sector.
The MoU is expected to be totally sealed in December 2016 during PETROTECH-2016.
Both ministers also agreed to strengthen the existing cooperation in oil and gas sector, with particular reference to explore investment opportunities for Indian public and private sector companies in Nigeria.
Kachikwu assured the investors that Nigeria would be back to its 2.2 million barrels-per-day production capacity by December 2016.
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