India aims to buy stakes in producing oil and gas fields abroad

By Promit Mukherjee and Nidhi Verma MUMBAI (Reuters) - India aims to invest in producing oil and gas fields abroad to compensate for falling domestic output and to help reduce the impact of oil price volatility, the oil minister said on Tuesday. India, the world's third biggest oil consumer, imports about 80% of its oil needs, making it highly susceptible to crude price swings. 'Today we are very much focused to invest in producing fields,' Oil Minister Dharmendra Pradhan said, adding that the eastern part of Russia was an area 'we are concentrating on.' He said India was negotiating with Russia's Rosneft to invest in eastern Russia

Reuters December 18, 2019 00:10:25 IST
India aims to buy stakes in producing oil and gas fields abroad

India aims to buy stakes in producing oil and gas fields abroad

By Promit Mukherjee and Nidhi Verma

MUMBAI (Reuters) - India aims to invest in producing oil and gas fields abroad to compensate for falling domestic output and to help reduce the impact of oil price volatility, the oil minister said on Tuesday.

India, the world's third biggest oil consumer, imports about 80% of its oil needs, making it highly susceptible to crude price swings.

"Today we are very much focused to invest in producing fields," Oil Minister Dharmendra Pradhan said, adding that the eastern part of Russia was an area "we are concentrating on."

He said India was negotiating with Russia's Rosneft to invest in eastern Russia.

Price volatility was a major challenge for India, the minister said, adding that "the changing geopolitics is creating anxiety, creating uncertainty that affects commodity prices."

Indian firms have invested in foreign oil and gas assets, but many of these assets are still under exploration or not hitting production goals.

"At some point of time India was investing in African countries where a lot of geopolitical challenges were," he said.

Pradhan said the acquisition by Indian investors of stakes in producing fields in the United Arab Emirates and Russia's Vankor field had started adding to corporate revenues.

In addition to talks on oil investment, the minister said India and Russia were planning a maritime link from Vladivostok to eastern India. High transport costs have made Russian crude expensive for Indian refiners.

Pradhan said India was also investing in infrastructure to encourage the use of natural gas, which produces lower emissions than oil and coal, helping the country reduce pollution and providing a buffer against more volatile crude prices.

"We are rebalancing the hydrocarbon portfolio by giving more thrust to natural gas and other green alternatives," he said.

(Reporting by Promit Mukherjee and Nidhi Verma; Editing by Edmund Blair)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.