The federal government of Nigeria has struck a whopping USD 15 billion investment deal with the Indian government in Oil and Gas.
The deal was sealed by the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu [pictured above].
In the yet to be agreed terms, the Indian Government would make an upfront payment for Crude purchase to Nigeria.
The Indians, on the other hand, will 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.
They will also be rewarded with exploration and production activities on a Government-to-Government basis by Indian PSU Companies.
Other features of the contract will include long term contracts for supply of crude to Indian PSU companies from Nigeria.
It will also include possibilities of executing CGD and LPG infrastructure projects by Indian PSU companies in Nigeria.
Dr. Kachikwu is currently on a three-day visit to India where he concluded talks on the investments in Nigeria’s Oil and Gas sector.
Kachikwu held 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.
They acknowledging that Nigeria was one of the largest trading partners of India in Africa which is dominated by import of crude oil and gas from Nigeria.
In 2015-16, India imported nearly 23.7 MMT of crude (nearly 12% of India overall imports) and over 2 MMTPA of LNG from Nigeria.
Following this negotiation, the two countries have agreed to work on a Memorandum of Understanding to facilitate investments by India in the Nigerian Oil and Gas sector.
The Indians have their eyes on areas such as Term Contract, participation of Indian companies in the refining sector and oil and gas marketing.
Other areas of their interest are upstream ventures, development of gas infrastructure and 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 Oil and Gas sector, and in particular to explore investment opportunities for Indian Public and Private sector companies in Nigeria.
Dr. Kachikwu later held one-on-one meetings with top executives of Indian Public Sector Oil and Gas companies and also representatives of some Indian private sector Oil and Gas companies as part of events marking his official visit.
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