Economy

India seeks more crude oil from Nigeria

Our Bureau New Delhi | Updated on March 12, 2018




In view of the significant expansion in domestic refining capacity, India has sought more crude oil from Nigeria.

The annual requirement of Nigerian crude oil would be around 18 million tonnes per annum from 2012-13. The Petroleum Minister, Mr S. Jaipal Reddy, indicated this at a meeting with Mr Henry Odien Ajumogobia, Minister of Foreign Affairs of the Federal Republic of Nigeria, here on Wednesday. Mr Reddy referred to the fact that India imported 13.2 million tonnes of crude oil from Nigeria in 2009-10.

According to an official release, Mr Reddy informed the Nigerian Minister that India is interested in tying up LNG imports from Nigeria immediately, as the country's requirement of LNG is projected to go up by 12 to 15 million tonnes per annum in the foreseeable future.

Mr Ajumogobia is in Delhi for the Indo-Nigeria Joint Commission meeting as its co-Chairman. The Nigerian Foreign Minister indicated that Nigeria LNG was considering to dilute a part of its stake and GAIL (India) Ltd is being considered as one of the parties.

GAIL is pursuing participation in the Nigerian Gas Master Plan Project and has submitted a proposal along with other international consortium members. GAIL has also expressed interest in participating in petrochemical projects and city gas distribution projects in Nigeria.

Further, GAIL is keen to take equity in the upcoming Brass LNG and OK LNG Projects, to ensure long-term sourcing of LNG from Nigeria.

Steady progress was being made by the joint venture between ONGC Videsh Ltd and Mittal Investments, ONGC-Mittal Energy Ltd (OMEL) in OPL 279 and 285, where OMEL is carrying out the exploratory drilling and carrying out a detailed feasibility study for a downstream refinery.

Referring to India's investments in blocks OPL 321 and 323 in the upstream sector, India called for an early resolution of the litigation related to the blocks in Nigeria.

Mr Reddy also met Mr Brad Wall, Premier of the Province of Saskatchewan, Canada. They discussed the possibilities of Indian companies investing in the upstream sector for exploration and exploitation of non-conventional hydrocarbons such as oil sands, shale oil, and tight oil.

Published on March 16, 2011

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