India to ink pact with Nigeria, invest in oil and gas

Published: 18th October 2016 01:54 AM  |   Last Updated: 18th October 2016 04:19 AM   |  A+A-

By Express News Service

NEW DELHI: Oil Minister Dharmendra Pradhan along with his Nigerian counterpart, Emmanuel Ibe Kachikwu discussed the potential in diversifying the engagement of the two countries in the hydrocarbon sector on Monday.
Meanwhile, India is also looking at signing a preliminary agreement with Nigeria in December for investing in refineries as well as exploration and production of oil and gas in the African nation.

“The Nigerian Minister requested a potential investment by India of $15 billion, if the terms can be agreed to, in Nigeria as upfront payment for crude purchase,” the oil ministry statement said. This amount is to be repaid on the basis of firm crude oil sales to India over some years and in consideration for collaborating in refining sector,
exploration and production activities.
“Both agreed to explore investment opportunities for Indian public and private sector companies in Nigeria,” it added. 

The two sides have also agreed “to work on a MoU to facilitate investments by India in the Nigerian oil and gas sector and include areas such as term contract, participation of Indian Companies in the refining sector, oil and gas marketing sector, upstream sector, development of gas infrastructure and training of oil and gas personnel in Nigeria,” it said.
The MoU is expected to be firmed up during the PETROTECH-2016 conference.
In 2015-16, India imported nearly 23.7 MMT of crude (nearly 12% of India overall imports) from Nigeria.

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