India Could Invest $15bn in Nigerian Oil, Gas Sector

Nigeria and India have discussed ways to diversify engagement in the hydrocarbon sector and New Delhi could invest $15bn in the African nation’s oil and gas sector, Indian oil ministry said October 17.  

Indian oil minister Dharmendra Pradhan met his counterpart Emmanuel Ibe Kachikwu, Nigerian minister of state for petroleum in New Delhi. Kachikwu is on a three-day official visit to India. Nigeria is one of the largest trading partners of India in Africa. In 2015-16, India imported nearly 23.7mn mt of crude, nearly 12% of India overall imports, and over 2mn mt/yr of LNG from Nigeria.

“The Nigerian minister requested a potential investment by India of $15 billion, if the terms can be agreed to, in Nigeria, as upfront payment for crude purchase,” the ministry said.

Indian and Nigerian delegations in New Delhi (Credit: Oil ministry, India)

The two sides agreed to work on a memorandum of understanding to facilitate investments by India in the Nigerian oil and gas sector and include areas such as term contract, participation of Indian companies in the refining sector, oil and gas marketing sector, upstream sector, development of gas infrastructure and training of oil and gas personnel in Nigeria. The MoU is expected to be firmed up in December during Petrotech 2016, which will be held in New Delhi.

Shardul Sharma