Just a mention of energy in Indo-China statement

Petroleum minister Mani Shankar Aiyar's plans of turning China from a competitor into a collaborator through an oil and gas alliance may not take off soon.

This is because the energy sector will see just a mention in the joint statement to be signed when Chinese premier Wen Jiabao arrives this weekend.

Officials told Business Standard that the Chinese energy sector was unlikely to be represented in the delegation accompanying the premier.

Aiyar's idea is yet to take shape. He had announced setting up of a joint task force to identify areas of collaboration but it was yet to be formally constituted.

"Domestic oil companies were not likely to sign any agreement with the Chinese during the premier's visit," said an official. Officials said the task force once constituted would visit China, which may be followed by Aiyar.

After it identifies areas of mutual cooperation, a joint working group with China will be formed in the energy sector. India and China, the fourth and the second largest consumers of oil and gas in the world, respectively, are competing in acquiring acreages abroad. India lost out to China in Sudan and Angola, though the two are jointly operating in another block in Sudan.

In its keenness to collaborate with China, India even sought participation in the Kazakh-China pipeline project.

Aiyar had identified Gail (India) Ltd. as the likely partner at the Indo-Kazakhstan joint commission meet in February. Officials even claimed that India would be targeting China for marketing products from its operations in Kazakhstan.

But nothing concrete on the energy front is likely to be achieved as discussions during the Chinese premier's visit will not have energy as a focus area. It would be more about politics, water, trade, technology and education, said the officials.