Petroleum Minister Murli Deora said that India is looking forward to be a part of Africa’s natural gas market. The country is also seeking to partake in the continent’s “exploration and production opportunity”, as per the news published by Thaindian News on December 7, 2009.

 

According to the reports, the state-owned explorer ONGC’s (Oil and Natural Gas Corp) overseas wing ONGC Videsh Ltd is considering to set up a Greenfield refinery in Nigeria. Furthermore, to acquire stakes in hydrocarbon blocks in Ghana, GAIL (India) Ltd and ONGC are in discussions with Ghana National Petroleum Corp. (GNPC).

 

ONGC Videsh Limited led upstream companies in India have made an overseas investment of around US$ 12 Billion, with oil & gas production share of India from these overseas assets touching 8.8 Million Tonnes in 2008. According to the Minister, investment made by India in Sudan has proved mutually beneficial and that India is keen to invest in other such ventures in the continent.

 

The downstream companies in India are all set to offer skills to the African countries in various areas such as establishing LPG terminal and depot plans, putting cross-country pipelines, and marketing and distribution of petroleum products.

 

Deora said that Indian companies are very much keen to participate in the upcoming exploration and production opportunities in Ghana, Sudan, Uganda, Angola and Nigeria. Besides this, these companies are also looking forward to exploit other opportunities in producing blocks, particularly in Algeria, Libya and Egypt.

 

Moreover, existing fields in various parts of the world have entered the phase of natural slump in production. As a result, global explorers are eyeing on Africa and its offshore regions. Consequently, in order to harness natural resources in Africa in a cost-effective manner for mutual benefit, India is eager to provide skills, technology and investment.

 

Indian investments in Africa would solve dual purpose. One, it would be a profitable deal. Second, it would secure energy supply needs in India.

 

According to a Research Analyst at RNCOS, “India offers a huge hydrocarbons market to African countries. Having proven expertise in consultancy, training, refining, infrastructural development, etc., India has emerged as a top-refining hub. Also, there lies a huge potential for business tie-ups and India is moving on the right track by taking initiatives of making investments in this extremely promising African continent.”