Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has negotiated a $15bn investment with India for the oil and gas sector.
According to a statement signed by the Director, Press, in the Ministry of Petroleum Resources, Idang Alibi, the Indian Government would make an upfront payment for crude purchase to Nigeria when the terms of the deal is agreed upon.
It said the negotiations would be for terms to be agreed, where the Indian Government would make an upfront payment for crude purchase to Nigeria.
This, it said, would be repaid on the basis of firm Term Crude Contracts over some years and in consideration for Indian public sector companies collaborating in the refining sector as well as exploration and production activities.
It added that long term contracts for supply of crude to Indian PSU companies from Nigeria and possibilities of executing CGD and LPG infrastructure projects by Indian PSU companies in Nigeria was part of the negotiation.
The statement added that Kachikwu had concluded talks on the investments in Nigeria’s oil and gas sector in a bilateral meeting with his Indian counterpart, Shri Dharmendra Pradhan.
“Both ministers noted the existing and significant engagement between the two countries in the hydrocarbon sector,” the statement said.
According to the statement, the Indian minister acknowledged that Nigeria is one of the largest trading partners of India in Africa, which is dominated by import of crude oil and gas.
Between 2015 and 2016, India imported nearly 23.7 million tons of crude, which was nearly 12 per cent of India’s overall imports and over two million tons 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.
It said the investment would specifically be in areas such as Term Contract, participation of Indian companies in the refining sector, oil and gas marketing.
Others include upstream ventures, the development of gas infrastructure and in the training of oil and gas personnel in Nigeria.
“The MoU is expected to be firmed up in December 2016 during PETROTECH-2016.
“Both ministers also agreed to strengthen the existing cooperation in oil and gas sector, and in particular, to explore investment opportunities for Indian public and private sector companies in Nigeria,” it said.
It added that the minister had one-on-one meetings with top executives of Indian public sector oil and gas companies and also representatives of some Indian private sector oil and gas companies.
Source: Today Trending News