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Deora takes up energy security issue with Chinese minister

— PHOTO: PIB

MUTUAL INTEREST: Union Minister for Petroleum and Natural Gas Murli Deora with the Deputy Minister of Energy and Industry, Republic of Tajikistan, Mukhidinov Pulot Mukhidinovich, at a function in Dushanbe on Friday.

NEW DELHI: In a significant development aimed at putting an end to cut-throat competition between the two Asian giant economies, India has urged China to join hands with it along with some other nations to bid for future oil and gas assets and projects to ensure protection of mutual interests and at the same time meeting the energy needs of the two nations.

The issue was raised by the Petroleum and Natural Gas Minister, Murli Deora, with the Chinese Foreign Minister, Yang Jiechi, on the sidelines of the Shanghai Cooperation Organisation (SCO) summit at Dushanbe on Saturday. The development comes close on the heels of the Oil and Natural Gas Corporation Videsh Limited (OVL) getting the nod of the U.K.-based Imperial Energy for its formal takeover with a bid of $2.58 billion beating its Chinese rival Sinopec.

Highly placed sources said that Mr. Deora took up with Mr. Jiechi the issue of the need for “energy security” for the two fast growing economies of the world and suggested that instead of rivalling each other at various international auctions, the two nations along with Vietnam and possibly some other countries could join hands to make bids for acquisition of bids abroad, including those in African nations that have emerged major oil and gas holding countries. “The Chinese Foreign Minister was quite responsive to the idea of Asian nations joining hands to bid for oil and gas assets abroad but nothing concrete had emerged during the meeting. It is a good beginning and hopefully things will work out positively in future. This development needs a quick follow-up and close monitoring,” a senior official said.

Mr. Deora had also met the Russian President, Dmitri Medvedev, on the sidelines of the summit and sought his support for OVL’s acquisition of Imperial Energy.

Mr. Deora also called on Emomali Rahmon, President of Tajikistan, on Saturday. Both discussed the state of bilateral relations and future prospects, particularly in tourism, and greater private sector involvement in various sectors of Tajikistan.

Mr. Deora, and Mukhidinov Pulot Mukhidinovich, First Deputy Minister of Energy and Industry, Tajikistan, launched the modernisation project of Varzob-I hydro power station at Dushanbe.

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