Africa keen to tie knot; OVL to set up refinery in Nigeria
New Delhi | Monday, Dec 7 2009 IST
 

The government today evinced keen interest in meeting their exponentially growing Energy requirements from African nations, with ONGC Videsh in talks for setting up a refinery in Nigeria and others looking for sourcing LNG from what was once known as the dark continent. "In attempts 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. Mr Deora was apparently referring to a proposal of OVL, the overseas arm of India's major ONGC, to build a 1,80,000 barrels per day refinery in collaboration 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.

"We are a stable, long-term and growing market for Africas natural gas. Our companies are interested in sourcing LNG as well as equity participation in existing and upcoming LNG terminals in Africa," he said. Mr Deora said the country was keen to expand import of 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," Mr Deora said.

The Minister said Indian companies are 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," Mr Deora said. The Minister said the country was a large consumer of crude oil from nations such as Nigeria, Angola, Egypt and Sudan. "Our depth of engagement with Africa has grown as our companies are present in retail of petroleum products, building of storage terminals and refinery up gradation in Africa. We are also engaged in city gas distribution and CNG projects," he said.

"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," Mr Deora said.

Speaking at the same event, External Affairs Minister S M Krishna called for establishment of a "truly global" and competitive energy market for long term benefit for producers and consumers.

The two-day conference has been organized jointly by the Ministry of Petroleum & Natural Gas and FICCI.

The Minister said Indias premier design and engineering consultancy company, Engineers India Limited, was ready to share its expertise with Africa in areas such as petroleum refineries, petrochemicals, oil & gas processing - both onshore and offshore and pipelines.

Mr Krishna said the global energy trends suggest that the demand for oil had peaked in the developed world. The new global claimants for oil are now located in Asia, including India, where a rapidly growing economy is driving its demand for energy.India would need to depend upon 90 per cent of oil and 60 per cent gas imports by 2030-31. At presently, about 15 per cent of India's crude oil imports came from Africa, but we can do with more.

Speaking on the occasion, Dr Emmanuel Egbogah, Presidential Adviser on Energy Matters, Federal Republic of Nigeria, invited Indian companies to operate in the Nigerian oil and gas sector and expressed confidence that Indian investments in Nigeria would be profitable while at the same time it would secure Indias energy supply needs. Nigeria, he said, was undertaking a comprehensive reform of its oil and gas industry and proposed to deregulate its downstream sector. These reforms would create opportunities for foreign companies to take part in the development of the Nigerian and other African economies.

-- (UNI) -- 07DC21.xml

 

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