News Agency of Nigeria (NAN)

Kachikwu negotiates $15bn investment

Minister of Petroleum Resources, Dr Ibe kachikwu on Investment
By Edith Ike-Eboh
The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, has  negotiated a 15 billion dollars investment with Indian government for  the oil and gas sector
Mr Idang Alibi, Director of Press,  Ministry of Petroleum Resources said the negotiation was part of the three day investment drive of the minister to India.
He  said the investment, on terms yet to be agreed, would make  the Indian Government make an upfront payment to Nigeria for Crude.
This would  be repaid on the basis of firm Term Crude Contracts over some years and in consideration for Indian public sector companies collaborating in the refining sector as well as exploration and production activities.
He added that long term contracts for supply of crude to Indian PSU companies from Nigeria and also possibilities of executing CGD and LPG infrastructure projects by Indian PSU companies in Nigeria was part of the negotiation.
Kachikwu had concluded talks on the investments in Nigeria’s Oil and Gas sector in a bilateral meeting with his Indian counterpart in charge of Petroleum and Natural Gas, Shri Dharmendra Pradhan.
“Both Ministers noted the existing and significant engagement between the two countries in the hydrocarbon sector.
According to the statement, the Indian minister acknowledged that Nigeria was one of the largest trading partners of India in Africa which was dominated by import of crude oil and gas from Nigeria.
Between  2015 and 16, India imported nearly 23.7 million tons  of crude which was nearly 12 per cent of India overall imports and over two million tons  of LNG from Nigeria.
Following this negotiation, the two countries have agreed to work on a Memorandum of Understanding(MOU) to facilitate investments by India in the Nigerian Oil and Gas sector.
The investment would specifically be  in areas such as Term Contract, participation of Indian companies in the refining sector, oil and gas marketing, upstream ventures, the development of gas infrastructure and in the training of oil and gas personnel in Nigeria.
“The MoU is expected to be firmed up in December 2016 during PETROTECH-2016.
” Both Ministers also agreed to strengthen the existing cooperation in Oil and Gas sector, and in particular to explore investment opportunities for Indian Public and Private sector companies in Nigeria,” it said.
It added that the Minister had one-on-one meetings with top executives of Indian Public Sector Oil and Gas companies and also representatives of some Indian private sector Oil and Gas companies.