The Hindu : Business : Kuwait keen to invest in oil, gas projects

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Friday, Dec 07, 2007
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Kuwait keen to invest in oil, gas projects

Special Correspondent

In talks with Reliance Industries and others

Wide scope for foreign cos. to invest in oil sector
Kuwaiti firm eyes petrochemical sector also

NEW DELHI: Kuwait is keen to invest in grassroots oil and gas projects in India. It is also in talks with private petroleum companies, including Reliance Industries, to take up such projects.

This was conveyed by the visiting head of the Kuwait Petroleum Corporation (KPC), the national oil company of Kuwait, Saad A. Al Shuwaib, during his meeting with Union Petroleum and Natural Gas Minister Murli Deora at his office here on Thursday.

Mr. Saad said KPC was exploring opportunities in the refinery and petrochemical sectors and was keen to expand its business and bilateral relationship with India.

On his part, Mr. Deora said that this was the right time for foreign companies to invest in Indian oil and gas sectors as in most of the hydrocarbon activities, 100 per cent foreign direct investment was allowed. He said three grassroots refinery projects were being implemented by Indian companies in Paradip (Orissa) by the Indian Oil Corporation, in Bina (Madhya Pradesh) and in Bhatinda (Punjab) by Bharat Petroleum Corporation Limited.

The Bina and Bhatinda projects were being implemented as joint venture projects with Oman Oil Company and global steel major Mittal Investments. Other projects in the pipeline for setting up refinery and petrochemical complex include IOC in Panipat, Oil and Natural Gas Corporation (ONGC) in Mangalore, HPCL in Vishakhapatnam.

Mr. Deora said that promoting refinery projects in India was competitive as capital cost was low and project consultancy by PSU technology company Engineers India was of high quality and at competitive cost. The Indian side also suggested that Kuwaiti company could also join Indian oil marketing companies in bidding for the upcoming offer of exploration blocks under NELP-VII.

KPC is in talks with Reliance Industries and IOC for investing in refineries and petrochemical plants in the country.

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