India keen on buying oil, LNG from Canada on long-term basis

Eager to diversify its energy sources, India is keen on buying crude oil and liquefied natural gas (LNG) from Canada on long-term contracts to meet its vast growing energy needs.

 

Oil Minister M Veerappa Moily used the sidelines of the Petrotech 2014 conference to court energy ministers of hydrocarbon rich nations of UAE, Bahrain, Canada, Ecuador and Libya to not just seek oil and gas supplies but also look at acquiring assets.

 

Moily said India was seeking a long-term supply contract with Canada, a nation from where state-owned Indian Oil Corp (IOC) last November joined private refiners Reliance Industries and Essar Oil in importing oil.

 

"We are keen to engage with Canada for oil and gas and LNG opportunities," he said. "We seriously consider Canada as a destination for investments by our national oil companies."

 

While ONGC Videsh Ltd has set up a country office in Calgary to pursue investment opportunities, IOC and gas utility GAIL India are seeking opportunities to either invest in oil and gas fields including shale, or for sourcing crude oil and LNG.

 

"Currently, IOC is pursuing discussions for LNG off-take from Canada," Moily said in discussions with Premier of Alberta Alison M Redford.

 

With about 60% of its energy supplies coming from the West Asia, New Delhi wants to tap newer sources to expand its basket. Western sanctions against Iran has already led to a significant drop in oil sources from what once was India's second biggest supplier. Unrest in Libya and Sudan too have disrupted supplies.

 

In his meeting with Libyan Oil Minister Abdulbari A Arousi, Moily pressed for the renewal of Bharat Petroleum Corp Ltd's term contract for sourcing of crude oil. The contract fell due to unrest in the African nation.

 

In talks with UAE's Energy Minister Suhail Mohmmed al Mazrouei, Moily said OVL, the flagship overseas acquisition firm, may be considered by the Middle-East nation for an onshore oil exploration license as well as offshore licence.

 

"OVL would be keen to partner Mubadala (an investment and development company supporting the diversification of the UAE) in jointly pursuing E&P assets in third countries," he said.

 

To Bahrain's Minister for Finance and incharge of national oil and gas authority Shaikh Ahmed bin Mohammed Al Khalifa, Moily said GAIL would be interested in participating in gas sector projects in Bahrain.

 

Also, Engineers India Ltd is keen on participating in the USD 6.5 billion Sitra refinery project.