India to acquire more oil assets in Russia

Oil diplomacy on in Latin America: Natwar Singh

India was making diplomatic initiatives to secure oil and gas from Persian Gulf, Russia and Africa, External Affairs Minister K Natwar Singh said today. He said negotiations were on to significantly expand India's investment in Russia's energy sector.

Singh's statement comes at a time when ONGC Videsh is a seeking a 15 per stake in the Yuganskneftegas field, which was bought over by state-owned Russian company Rosneft.

After getting a foothold in oil and gas properties in 10 countries, including Sudan, Russia, Vietnam, Iran and Myanmar, India is now "pursuing new opportunities in Columbia, Cuba, Ecuador, Trinidad-Tobago Brazil and Argentina", Singh said when addressing a gathering at the valedictory function of Petrotech 2005 here.

Planning Commission Member Kirit Parikh, who also addressed the gathering, said the best way to secure energy was to cut wastage and reduce demand.

Availability of crude oil could increase by 10 million tonnes without any capacity addition, he added.

"Setting up energy-related engagements by consolidating existing relationships and reaching out to new areas constitutes a special challenge to oil diplomacy. India is well-placed in respect of the principal sources of global supply," he said.

India has historic links with the Persian Gulf region, which are being re-invigorated, while Russia's role in setting up India's oil and gas infrastructure over the past 50 years is being used as a stepping stone for expanding investment in that country.

"Africa, the third principal petroleum source, provides a special opportunity to us. We have had traditional ties with Africa, having participated in its anti-colonial struggle. Now, with the emergence of African countries as major petroleum producing states, the challenge before us is to build upon the goodwill that already exists," Parikh said.

"The challenge before the ministries of external affairs and petroleum is to engage in a deeper diplomatic dialogue with the principal African countries so that the traditional goodwill is leveraged into long-term energy-based engagements," he said.