Dr. Ibe Kachikwu has negotiated a $15bn dollar investment with Indian Government for the oil and gas sector.
The Director, Press Ministry of Petroleum Resources, Idang Alibi, announced this in a statement released yesterday. He stated that the negotiations were part of the three-day investment drive of the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, to India.
The Indian Government is expected to make an upfront payment for crude purchase to Nigeria. This would be repaid on the basis of firm Term Crude Contracts over some years. It will also consider Indian public sector companies collaborating in the refining sector.
He added that long term contracts for supply of crude to Indian PSU companies from Nigeria and possibilities of executing CGD and LPG infrastructure projects by Indian PSU companies in Nigeria was part of the negotiation.
Kachikwu, Indian Counterpart Fosters Bilateral Relations
Kachikwu made the negotiations in a bilateral meeting with his Indian counterpart, Shri Dharmendra Pradhan.
“Both ministers noted the existing and significant engagement between the two countries in the hydrocarbon sector.”
According to the statement, the Indian minister acknowledges Nigeria as one of the largest trading partners of India in Africa. This is majorly in crude oil and gas.
Between 2015 and 2016, India imported nearly 23.7 million tons of crude which was nearly 12 per cent of India’s overall imports and over two million tons of LNG from Nigeria.
Following this negotiation, the two countries agreed to work on a Memorandum of Understanding to facilitate investments by India in the Nigerian Oil and Gas sector.
It said the investment would specifically be in areas such as Term Contract, participation of Indian companies in the refining sector, oil and gas marketing.
Others include upstream ventures, the development of gas infrastructure and in the training of oil and gas personnel in Nigeria.
He said, “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.”
It added that the minister 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.