Wednesday, 24 February 2016

It's beyond "A Buyer – Seller" Relation

It's beyond "A Buyer – Seller" RelationThe 4th India Africa Hydrocarbons Conference concluded in New Delhi, India on January 22, 2016. Its objective was to strengthen cooperation between India and Africa. Historically, Africa has been supplier of oil and gas to India. India, on the other hand, has been a source of stable demand. India imports crude oil nearly 16% from Africa now, with the majority coming from Nigeria and Angola.  

Africa is an oil supplier to the world. In recent decades, gas discoveries have also been made. It has thus came forth as a major supplier of gas. Africa accounts for 14.5% of current proved accessible oil reserves and 13.2% of the accessible gas reserves. Given its geological conditions, it is also predicted that there will be more oil and gas discoveries in Africa. Though, there is minimal connection of hydrocarbon sector to other sectors of the economy in Africa.  

Africa also faces challenges in the form of partial refining capacity on the continent. As a result, some countries export crude oil, only to import the refined petroleum products back later at an additional cost. Consequently, what Africa needs is cooperating with nations that not only demand oil and gas but can also invest in developing the basic infrastructure of the economy as well as help formulate the downstream sector.   With India’s arrival as one of the fastest growing major economies, the energy needs have gone up strongly.

Oil and gas contribute to more than a third of India’s energy demand. Though, since India has limited reserves at home for these fossil fuels it has led India to import a substantial quantity of these fossil fuels. At present, India imports more than 75% of its crude oil and 35% of its natural gas. As a result, India has emerged as the fourth largest consumer and third largest importer of crude oil. Thus, India is a rewarding market for the oil and natural gas producers and exporters.  

Furthermore, India can also be a striking partner in the downstream technology since it is decisively recognized itself as a strong player in refining and petrochemicals. India is the fourth largest country by refining capacity. Furthermore, India is also a net exporter of finished petroleum products. Historically, Africa has been supplier of oil and gas to India. India, on the other hand, has been a source of stable demand. India imports crude oil nearly 16% from Africa now, with the majority coming from Nigeria and Angola.   Additionally, Indian public and private sector companies have interests in oil and gas fields across Africa, including Sudan, South Sudan, Mozambique, Gabon and other countries. India can partner with Africa in covering the entire supply chain of the hydrocarbon sector. This ranges from exploration to refining and on to distribution, transportation and storage. India can also help Africa in investment in human resources and technology.  

India-Africa hydro-carbon partnership The India-Africa hydro-carbon partnership extends beyond just that of a buyer-seller to include Indian investment in dia - Africa Forum Summit held in New Delhi in October 2015. A total of 21 African countries took part in the event. There was representation from Africa at various levels including Ministers of Petroleum, Petroleum regulators, CEOs of National Oil Companies and experts in the field of petroleum. The delegations of 9 African countries Africa, technical education etc. These issues were deliberated in the 4th India Africa Hydrocarbons Conference organized by the Ministry of Petroleum and Natural Gas, Government of India.

The conference was structured in New Delhi on January 21 to January 22, 2016. It intended to fortify the relations between India and Africa in all its dimensions, predominantly in the Hydrocarbons sector. The main objective of the conference was to advance deliberations on energy cooperation between African nations and India.   The conference intended to give a renewed drive to India’s engagement with African nations in the hydrocarbon space, and carried forward the vision of a multidimensional, comprehensive India - Africa partnership spelt out by Hon’ble Prime Minister Narendra Modi at the 3rd In- Mauritius, Morocco, Algeria, Sudan, South Sudan, Tunisia, Senegal, Equatorial Guinea and Liberia - were headed by the respective Ministers. Senior officials led the delegations from Nigeria, Ghana, South Africa, Egypt, Tanzania, Kenya, Mozambique, Uganda, Libya, Cote d’Ivory, Gabon & Sierra Leone.  

India is looking at raising crude oil imports from Africa as part of efforts to expand sourcing of energy and reducing dependence on the Middle East, Oil Minister Dharmendra Pradhan said. India imports nearly 80% of its oil needs. Nearly two-third of this volume traditionally was supplied by exporters in the Middle-East led by Saudi Arabia, Iraq, and Kuwait. This dependence over time has been brought down. Crude import from Africa has played an important role in India's energy security. Read more...

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