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Chavez offers oil to India

Sujay Mehdudia

CARACAS (VENEZUELA): Terming India as one of the largest emerging markets in the world and assuring it of full cooperation in addressing its energy security concerns to maintain the economic growth tempo, Venezuela President, Hugo Chavez on Wednesday said he was for a multi-polar world and promised to ensure that Venezuelan oil reached Indian shores in the coming years.

“The visit of the Petroleum Minister, Murli Deora and its delegation is a very positive signal for our expanding relationship. He has brought with him a letter from the Indian Prime Minister, Manmohan Singh and I take this opportunity to send my greetings to the people of India. Breaking past traditions, Venezuela has started diversifying its oil market. In the past, the sole market was the United States. Today, apart from the U.S., we have markets in the Caribbean, Africa, Europe, South America, Asia and even in China.”

Mr. Chavez told a group of visiting Indian journalists in an informal interaction that his country was for strengthening relationship with India and China. It was sending to China one million barrels of oil per day.

“We are happy that with India also we have taken the first step by singing a Joint Venture agreement. It is a very important step and our oil will flow into India very soon. We have approved the presence of India and its companies in our oil fields with this new development.”

Mr. Chavez said Mr. Deora had requested two more areas in the Orinoco belt, including blocks in Carabobo and Junin Northe. “The political approval has been given. What we are doing is extremely important to increase joint production and also take our oil to India. We are also going to participate in refining and distribution in India,” he remarked.

Asked if the process of nationalisation of certain assets was a step in the right direction, Mr. Chavez said what he was doing was in favour of his people and the country. “It was a step towards stability. We need cement in order to build houses but that was being exported by multinational companies and sold to us at expensive rates. It belongs to us and we are buying it at a higher price which was one of the reasons for nationalisation.”

He said the nationalisation was to solve old problems his Government had inherited. “All this was bad business for Venezuela. Now we are doing something good for Venezuela,” he said.

Mr. Chavez said all agreements signed with Indian companies or government would be honoured.

“We are making this commitment today. Because business signed with India will not generate monopoly but will export oil, which is of common interest for the two countries. We have the largest oil reserves in the world. We are determined to diversify our market. Nationalisation is to recover the strategic areas that have been subjected to exploitation,” he said.

President Chavez said his country and government would always give preference to government-to-government deals because the government represented the people.

“The Government of India represents the great people of India. Our government represents the great people of Venezuela. So we are not doing business to make money or to benefit a tiny minority or to make rich people richer. We are doing business to benefit our people,” he said.

Mr. Chavez said Venezuelan oil would contribute to India’s economic growth touching 8 to 9 per cent. “With more than one billion population, they need energy. So we are happy to contribute modestly to the growth of India. By doing that we are contributing to creating a multi-polar world,” he said.

He said he knew multi-national companies very well as Venezuela had been dealing with them for 100 years. “So we know how to deal with them.”

Asked about Mr. Deora’s request for award of two more major oil blocks for India, Mr. Chavez said the political answer is ‘yes.’

“Now a team will deal with the technical aspects and I am certain the outcome will be positive. Today we are producing 3.2 billion bpd of oil. Very soon we will reach 5 million bpd even 6 million bpd. So in the near future, we might be sending to India one million bpd and it is totally feasible.”

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