Oil Diplomacy Initiatives by India: Overview

Oil Diplomacy Initiatives by India: Overview

Question - The 6th OPEC International Seminar was recently held at Homburg Palace, Vienna. Discuss the initiatives taken by India in the field of oil diplomacy on the sidelines of this gathering.

OPEC

• India and OPEC formed an agreement at the sidelines of the 6th OPEC International Seminar for the following:

• Establishment of regular India-OPEC Institutional Dialogue at level of Minister/Secretary General

• Dialogue will occur every year, alternating between Delhi and Vienna

• It will pursue various avenues of cooperation in the oil and gas sector

• First meeting is scheduled in Q4 of 2015

Union Minister for Petroleum and Natural Gas, India also met counterparts from the following nations:

Russia

• During the meeting with Russia, India agreed to expand bilateral energy cooperation

• A Joint Study was also conducted at an early date for exploring crude and gas pipeline feasibility from Russia to India

• India also evinced interest in importing LNG and crude from Russia

• Existing Indian investment in Russian projects was also explored as was the possibility of working in exploration and production sector jointly

Iran

• India and Iran discussed the former’s involvement in exploration and production projects in Iran

• They also discussed possibility of constructing gas pipeline from Iran to India through numerous alternate routes

Qatar

• Bilateral issues were discussed including supply of long term LNG supply to India

• Global scenario of LNG market and recent changes to the same were also discussed

Saudi Arabia

• Efforts were made to move beyond a buyer seller relationship to that of Energy Partnership

• Both sides agreed to identify concrete energy cooperation avenues between the 2 nations
Kuwait

• India invited investment from Kuwait in Indian refining and petrochemical sector
Iraq

• Potential for Indian public and private sector involvement in Iraqi hydrocarbon sector was discussed

UAE

• Possibility of collaboration between Indian and UAE companies in skill development and service sector were discussed

• Regular interaction between the 2 sides was prioritised to take energy cooperation forward

Venezuela

• Joint mechanism will be set up by 2 sides to settle outstanding commercial issues

Angola

• Indian public and private sector companies are to invest in upstream and LNG sector of Angola

Facts and Stats

- Iraq is the second biggest source of crude oil for India

- Venezuela is the 3rd biggest source of crude imports for India

- ONGC Videsh Ltd has investment in oil blocks in Venezuela

- IEA also met with India to advance cooperation in numerous sectors of oil and gas on the sidelines of the seminar