EMMANUEL Ibe Kachikwu, minister of state for Petroleum Resources, has today, Monday, October 17, in India, negotiated a US 15 billion investment with terms to be agreed, where the Indian Government would make an upfront payment for crude purchase to Nigeria, to be repaid on the basis of firm Term Crude Contracts over some years. The contract is also in consideration for Indian public sector companies collaborating in the refining sector as well as exploration and production activities on a government-to-government basis by Indian PSU companies, long term contracts for supply of crude to Indian PSU companies from Nigeria and also possibilities of executing CGD and LPG infrastructure projects by Indian PSU companies in Nigeria.
Kachikwu, who is currently on a three-day visit to India, concluded talks on the investments in Nigeria’s Oil and Gas sector in a bilateral meeting with Shri Dharmendra Pradhan, his Indian counterpart in charge of Petroleum and Natural Gas. Both ministers noted the existing and significant engagement between the two countries in the hydrocarbon sector, while acknowledging that Nigeria was one of the largest trading partners of India in Africa which is dominated by import of crude oil and gas from Nigeria. In 2015-16, India imported nearly 23.7 MMT of crude (nearly 12percent of India overall imports) and over 2 MMTPA of LNG from Nigeria.
Following the negotiation, the two countries have agreed to work on a memorandum of understanding to facilitate investments by India in the Nigerian Oil and Gas sector and specifically in areas such as Term Contract, participation of Indian companies in the refining sector, oil and gas marketing, 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.
On the sidelines of the official visit, Kachikwu 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.
— Oct 17, 2016 @ 19:10 GMT