New Delhi: ONGC Videsh, the overseas
investment arm of state-run Oil and Natural Gas Corporation,
is in talks to set up a refinery in Nigeria even as Indian
companies look at sourcing LNG from African nations.
"In efforts to broad-base our activities, OVL is
discussing setting up a greenfield refinery in Nigeria,"
Petroleum Minister Murli Deora said at the second India-Africa
Hydrocarbon Conference here today.
Though Deora did not give details, officials said he was
referring to the proposal of OVL to build a 1,80,000 barrels
per day refinery along with steel baron Lakshmi N Mittal in
return for oil blocks.
ONGC-Mittal Energy Ltd (OMEL), the joint venture of OVL
and Mittal Investment Sarl, landed two Nigerian blocks -- OPL
285 and OPL 279 -- in the 2006 round in return for downstream
commitments either in power, rail or refining.
OMEL is the operator for the two blocks. OPL-285 is a
deep-water block, where OMEL, through OMEL Energy Nigeria,
holds 64.33 percent interest and operatorship. The other
partners in the block are local Nigerian company EMO (10 percent), and French firm Total (25.67 percent interest).
In OPL 276, Total has 14.5 percent.
Deora said India was keen to expand import of liquefied
natural gas (LNG) from Africa.
"We are a stable, long-term and growing market for
Africa's natural gas. Our companies are interested in sourcing
LNG as well as equity participation in existing and upcoming
LNG terminals in Africa," Deora said.
Indian companies were keen to participate in upcoming
exploration and production opportunities in Angola, Ghana,
Sudan, Nigeria, Uganda and Cote D'Ivoire.
"Our companies are also interested in farm-in
opportunities in producing blocks especially in Libya, Algeria
and Egypt," he said.
Deora said India and Africa enjoy strong potential to
work together for strengthening energy security. "Several
African countries are endowed with rich hydrocarbon resources.
India is a willing partner of Africa ready to contribute
technology, skills and investment to harness these resources
in cost-effective manner for our common benefit."
India is currently world’s fifth largest consumer of
energy and accounts for nearly 3.8 percent of world’s energy
consumption. With the sustained economic growth rate of 7-8
percent, the demand for energy is on increase.
"We have in recent years invested in exploration and
production of oil and gas in Sudan, Nigeria, Libya, Egypt,
Gabon, Congo Brazzaville, Nigeria-Sao Tome Joint Development
Zone (JDZ) and Equatorial Guinea," he said.
"India is a big consumer of crude oil from Nigeria,
Angola, Egypt and Sudan, to mention just a few African
countries."
"Our depth of engagement with Africa has grown as our
companies are present in retail of petroleum products,
building of storage terminals and refinery upgradation in
Africa. We are also engaged in city gas distribution and CNG
projects," he said.
"We want to develop this cooperation further," he added.
OVL, he said, has till now made an overseas investment of
about USD 12 billion, with our share of oil and gas production
from these overseas assets reaching 8.8 million tonnes last
year.
"We offer to the countries in Africa expertise in several
fields, including in laying cross-country pipelines, setting
up terminals and depots, LPG plants, and marketing and
distribution of various petroleum products," he added.
PTI
First Published: Monday, December 07, 2009, 13:52