The Hindu : National : India for ties with energy-rich African nations

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Wednesday, Nov 07, 2007
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India for ties with energy-rich African nations

Sujay Mehdudia

— Photo: Sandeep Saxena

OIL DIPLOMACY: External Affairs Minister Pranab Mukherjee and Petroleum Minister Murli Deora (left) with Sudan’s Energy and Mines Minister Aead Ahmed Al-Jaz at the inauguration of India-Africa Hydrocarbons Conference in New Delhi on Tuesday.

NEW DELHI: India on Tuesday said the unprecedented rise in international oil prices posed a danger of economic dislocation to developing countries and could have a cascading effect on both oil producing and consuming nations.

Delivering a special address at the first India-Africa Hydrocarbons Conference here, Petroleum and Natural Gas Minister Murli Deora said the rise in crude oil prices was a matter of concern to all developing countries.

The conference is jointly organised by the FICCI and UNCTAD.

India, which imports 73 per cent of its oil needs, has been hit by the surge in international crude prices that touched $96 a barrel last week.

Indian Oil Corporation,Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited are now losing Rs. 240 crore a day on selling petrol, diesel, LPG and kerosene.

Mr. Deora said the greatest challenge was meeting the rapidly expanding energy needs of people in a cost-effective and environment-friendly manner.

During these challenging times, the spectacular oil reserves of Africa were gratifying, he sought and sought greater cooperation with energy-rich African nations.

India was seeking oil and gas blocks in nations such as Nigeria, Sudan and Egypt to bridge the energy deficit it faced. Mr. Deora said: “We are committed to ensuring our billion strong nation affordable access to energy. To insulate our economy from the vagaries of the international oil market and inflationary pressures that could arise from transferring the entire price rise to end-users, the Indian government and the national oil companies are absorbing over 85 per cent of the difference between cost of import and domestic oil prices.”

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