The Hindu Business Line : `India can invest up to $25 b in buying oil fields abroad'

The Union Petroleum & Natural Gas Minister, Mr Mani Shankar Aiyar, with the Chinese Ambassador, Mr Sun Yuxi, at a conference on `The China Miracle' in the Capital on Wednesday. — Kamal Narang

New Delhi , March 23

WHILE urging China to join forces with India in attaining energy security, the Petroleum Minister, Mr Mani Shankar Aiyar, today said that India could invest up to $25 billion in acquisition of overseas oil and gas fields.

Addressing a Confederation of Indian Industry conference on `The China Miracle', the Minister said, "We are in a position to raise $25 billion to invest in acquiring oil and gas properties abroad."

The Minister also hinted at the possibility of India soon receiving a foreign direct investment of over $8 billion in the energy sector. India's total annual FDI inflow currently stands at around the level that China received during 1983 to 1991 — $4-5 billion. However, China's FDI inflow today stands at about $50 billion annually.

India and China need to collaborate in the energy sector instead of competing with each other, he said. "When the world's most energy-thirsty countries pit against each other, the bid price for the limited properties available goes up," Mr Aiyar said. While India and China would continue to be dictated by market forces and could compete in some areas, there were possibilities of working together, the Minister said.

Often, India's flagship ONGC Videsh Ltd faced Chinese competition in bidding for oil and gas assets abroad, a rivalry that had seen asking price for the properties shoot up.

"In Sudan, both India and China have been working together for years in perfect harmony. China has a built a refinery in Khartoum while India has built a pipeline to transport oil. This model of co-operation can be replicated in Iran, Sub-Saharan Africa, Central Africa, Latin America and North and Central Asia," Mr Aiyar said.

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