Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has negotiated a 15 billion dollar investment with Indian government for the oil and gas sector.
This is contained in a statement signed by Mr Idang Alibi, director of Press in the Ministry of Petroleum Resources, in Abuja on Monday
The statement revealed that the negotiation was part of the three-day investment drive of the minister to Indian, adding that it would be for agreed terms and the Indian government expected to make an upfront payment for crude purchase to Nigeria.
This, it said, would be repaid on the basis of firm Term Crude Contracts over some years and in consideration for Indian public sector companies collaborating in the refining sector as well as exploration and production activities.
It added that 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 were part of the negotiation.
It also noted that Kachikwu concluded talks on investments in Nigeria’s oil and gas sector in a bilateral meeting with his Indian counterpart in charge of Petroleum and Natural Gas, 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 acknowledged that Nigeria was one of the largest trading partners of India in Africa, which was dominated by import of crude oil and gas from Nigeria.
It added that between 2015 and 16, India imported nearly 23.7 million tons of crude which was nearly 12 percent of India’s overall imports and over two million tons of LNG from Nigeria.
The statement also informed that following this negotiation, the two countries had agreed to work on a Memorandum of Understanding, MOU, to facilitate investments by India in the Nigerian oil and gas sector.
The investment, it further revealed, would specifically be in areas such as term contract, participation of Indian companies in the refining sector, oil and gas marketing, upstream ventures, 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 the oil and gas sector, and in particular to explore investment opportunities for Indian public and private sector companies in Nigeria,” it said, adding 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 oil and gas companies.