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India eyes investments in oilfields in Iran, elsewhere
Tehran, May 12: India will seriously look at investing in more oilfields abroad including Iran as its maiden bid in acquiring a stake in a Sudanese oil field has already started giving rich dividends, Petroleum Minister Ram Naik said here today.
Tehran, May 12: India will seriously look at investing in more oilfields abroad including Iran as its maiden bid in acquiring a stake in a Sudanese oil field has already started giving rich dividends, Petroleum Minister Ram Naik said here today.
"Our first consignment of 80,000 crude from Sudan will
arrive at Managalore port next week aboard a chartered tanker
'Sea Falcon'," Naik told after he arrived here for
ministerial level talks with Iran on cooperation in the energy
sector.
"We had picked up 25 per cent stake for Rs 3600 crore from the Canadian company Talisman in the Nile oil company in Sudan which produces 12 million tonnes of crude annually. With the investment, India will get a quarter of production or three million tonnes of crude a year," he said, adding that the results have proved prophets of doom wrong.
Naik will be attending a public reception for the consignment at a function to be held in Mangalore on May 15 when Deputy Prime Minister L K Advani will be the chief guest underscoring the repositioning of India's strategy in sourcing vital energy resources.
The minister said the production from the Sudan field has shown potential for growth.
ONGC Videsh Limited (OVL) had recently won a tender for oil exploration at the Farsi 2 block in Iran. India was keen to build on this small beginning, Naik added.
India currently imports over nine million tonnes of crude worth 1.8 billion dollars a year from Iran.
Naik said the investment in Iranian oil fields would be conceived as part of a package including import of Iranian LNG by India.
"The ONGC has also invested Rs 8200 crore in the Sakhalin oil fields in Russia taking half of Russia's 40 per cent stake. The rest is equally shared by Exxon and a Japanese consortium. Work is already on there and crude is expected to flow by 2005," Naik said.
India had signed an agreement with Iraq for investment in oil sector when Naik visited Baghdad last year and held talks with the ousted president Saddam Hussain.
"We hope that the bonafide agreements signed by the previous government will be honoured by whatever new dispensation that runs the new administration," Naik said.
He said India imports 84 million tonnes of crude oil which was worth Rs 85,000 crore last year and had to diversify sources of supply and production to ensure energy security in critical times.
Naik is accompanied by a high level delegation comprising M S Srinivasan, additional secretary in Ministry of Petroleum, Subir Raha, ONGC chairman and managing director, M S Ramachandran, IOC chairman, B S Negi, Gail (India) director (planning). Bureau Report
"We had picked up 25 per cent stake for Rs 3600 crore from the Canadian company Talisman in the Nile oil company in Sudan which produces 12 million tonnes of crude annually. With the investment, India will get a quarter of production or three million tonnes of crude a year," he said, adding that the results have proved prophets of doom wrong.
Naik will be attending a public reception for the consignment at a function to be held in Mangalore on May 15 when Deputy Prime Minister L K Advani will be the chief guest underscoring the repositioning of India's strategy in sourcing vital energy resources.
The minister said the production from the Sudan field has shown potential for growth.
ONGC Videsh Limited (OVL) had recently won a tender for oil exploration at the Farsi 2 block in Iran. India was keen to build on this small beginning, Naik added.
India currently imports over nine million tonnes of crude worth 1.8 billion dollars a year from Iran.
Naik said the investment in Iranian oil fields would be conceived as part of a package including import of Iranian LNG by India.
"The ONGC has also invested Rs 8200 crore in the Sakhalin oil fields in Russia taking half of Russia's 40 per cent stake. The rest is equally shared by Exxon and a Japanese consortium. Work is already on there and crude is expected to flow by 2005," Naik said.
India had signed an agreement with Iraq for investment in oil sector when Naik visited Baghdad last year and held talks with the ousted president Saddam Hussain.
"We hope that the bonafide agreements signed by the previous government will be honoured by whatever new dispensation that runs the new administration," Naik said.
He said India imports 84 million tonnes of crude oil which was worth Rs 85,000 crore last year and had to diversify sources of supply and production to ensure energy security in critical times.
Naik is accompanied by a high level delegation comprising M S Srinivasan, additional secretary in Ministry of Petroleum, Subir Raha, ONGC chairman and managing director, M S Ramachandran, IOC chairman, B S Negi, Gail (India) director (planning). Bureau Report