“The Nigerian minister requested a potential investment by India of 15 billion USD, if the terms can be agreed to, in Nigeria as upfront payment for crude purchases, to be repaid on the basis of firm term crude contracts over some years."
"This amount is to be repaid on the basis of firm crude oil sales to India over some years and in consideration for collaborating in refining sector, exploration and production activities," according to the financial portal Moneycontrol.
Nigeria and India agreed to strengthen the existing cooperation in the oil and gas sector in general, and in particular to explore investment opportunities for Indian public and private sector companies in Nigeria, the statement said.
Had a delegation level talk with my Nigerian counterpart HE Dr. Emmanuel Ibe Kachikwu, who is on a 3-day visit to India at New Delhi. pic.twitter.com/1Xwvaubdwt
— Dharmendra Pradhan (@dpradhanbjp) October 17, 2016
In 2015-16, India imported nearly 23.7 MMT of crude (nearly 12% of India's overall imports) and over 2 million metric tons per annum of LNG from Nigeria. Nigeria is one of India's largest trading partners in Africa.
However, the planned effort may be seemed as a small step towards the company competing with China in acquiring energy assets in Nigeria. Earlier this year Nigeria had signed oil and gas infrastructure agreements worth 80 billion USD with Chinese companies. Nigeria needs high value investments to upgrade its refineries. India is stepping up its attempts to match China in acquiring oil and gas blocks in African countries.
