The Hindu : Front Page : Energy tops Manmohan’s agenda

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Monday, Oct 15, 2007
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Energy tops Manmohan’s agenda

Sandeep Dikshit

India has offered to upgrade the Nigerian Railways and build a refinery and a thermal plant

To discuss greater trade linkages
India seeking closer defence ties with Nigeria

ABUJA: Prime Minister Manmohan Singh arrived here on Sunday to provide a fresh impetus to diversify India’s source of energy.

Accompanied by senior officials, Dr. Singh will also discuss closer defence ties and more diversified trade. This is the first bilateral visit by an Indian Prime Minister to the country in 45 years.

Dr. Singh’s visit to mainland Africa since the formation of the United Progressive Alliance government underlines the importance India has begun to attach to this part of the continent to source oil as also engage it in a manner that benefits both sides.

On top of the agenda is operationalising a $6 billion oil-for-infrastructure deal with Nigeria. In return for energy, India has offered to upgrade the Nigerian Railways and build a refinery and thermal plant.

“We have named our members to the Joint Steering Committee set up for the purpose. I am discussing the nomination of members from Nigeria when I meet my counterpart on Monday,” Union Petroleum Secretary M.S. Srinivasan said.

At present, nearly a quarter of India’s crude comes from sub-Saharan Africa, most of it from Nigeria.

More important, Nigerian crude is better in quality and more suited to Indian refineries since the sulphur content is low.

More and more Nigerian crude is being produced off-shore, as is the case in the entire West African region, which insulates its supply from any possibility of a domestic upheaval.

Diplomatic officials said increased supply of African crude will lessen India’s dependence for energy on the Middle-East. Unlike countries in the Middle-East, Africa permits foreign companies to take up stake in oil exploration and production.

Till not long ago, most of the Nigerian crude was bought on the spot market. India is seeking to reverse that and, in this respect, the Prime Minister will attempt to hasten the process of the deal as also the stake being taken by the Indian public and private companies in the Nigerian oil sector.

In order to diversify the relationship further, the two sides will also be discussing greater trade linkages with India’s biggest trading partner in Africa.

Commerce Secretary G.K. Pillai will be seeking to explore further opportunities for both sides to enhance trade from the present level of $8 billion. India is also seeking a much closer defence relationship with Nigeria that would include supply of a variety of defence equipment including armament and ammunition, fast attack vessels and upgrading its docks.

The defence cooperation relationship between the countries goes back several decades with Nigerian Army officers regularly receiving training at Indian defence establishments.

National Security Advisor M. K. Narayanan and Defence Secretary Vijay Singh will be discussing the fine print of closer defence ties with their counterparts and a pact is on the anvil.

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