India’s state-run companies are looking to acquire stakes in oil and gas blocks in Africa, form joint ventures in the continent and supply all-natural gas to meet increasing fuel demand in the country, according to the Asian nation
India’s oil minister S. Jaipal Reddy said, “Today as a lot as 21.5 per cent of India’s crude oil imports are from Africa. In the years ahead, we seek a lot more crude oil and liquefied organic gas from Africa.”
Africa has great hydrocarbon prospective with most of the oil production coming from West Africa, and new gas discoveries in East Africa. Nations like China is also investing heavily in the continent to create resources.
India has been facing a substantial energy deficit and imports about 80 per cent of its crude oil needs and is in scouting for hydrocarbon assets that can boost its energy safety in the long term, the minister added.
“Our firms are also interested in farm-in possibilities in creating blocks, especially in Libya, Algeria, Egypt and Nigeria,” Reddy said, adding that firms like GAIL (India) Ltd, Petronet LNG and Indian Oil Corporation (IOC) are interested in sourcing all-natural gas on a long-term basis from Africa.
He also stated the corporations would explore possibilities of equity participation in natural gas export projects, gas processing enterprises and gas-primarily based petrochemical projects in Africa.
“There is no ceiling on imports from Africa. We are attempting to maximise our oil sources in Africa,” Reddy mentioned.
However, he didn’t specify which projects Indian oil providers had been eyeing, how much they would invest.
“With Africa’s economic development picking up momentum and its power demands increasing, India is keen to develop into a reliable supplier of petroleum merchandise to Africa,” Reddy added.