Energy Sector - 2

[Guest]

<!--emo&:cool--><img src='style_emoticons/<#EMO_DIR#>/specool.gif' border='0' style='vertical-align:middle' alt='specool.gif' /><!--endemo--> Chad invites India to explore oil
30 Nov, 2007, 0411 hrs IST,Nirmala Ganapathy, TNN
NEW DELHI: A ministerial delegation from Chad, which met external affairs minister Pranab Mukherjee and minister of state for commerce Jairam Ramesh, has expressed willingness to allow India to participate in oil exploration in the country. India has offered Chad training in various sectors, including the petroleum sector, in exchange for participation in oil exploration in the West African country.

At present, there is no Indian participation in the oil and gas sector, while China is making its presence felt in a major way from oil exploration to building the country’s first oil refinery. The government, aware of these developments, is now actively looking at initiating oil talks with the landlocked country, especially as the Chad government plans to auction 20 blocks by the end of 2007 and beginning of 2008.

And the Chad government, which wants Indian expertise in setting up a fertiliser plant, a cement factory and technical know-how in the diary and leather industry, is only too willing to trade with oil blocks. Sources said the Chad government in response to the Indian interest has said it will look at giving oil blocks to India. Chad commerce minister Youssouf Abbassalah, who is leading the delegation, said, “I would like to mention that our minister of petroleum was in Delhi (for the India-Africa Hydrocarbon Conference) which is an indication that we are open for a partnership with the private sector. This co-operation could be either in upstream or downstream and in exploration.’’

He also said, “Since 2003, we have been producing 200 million barrels a year. We have a number of oil blocks which are unexplored.” Though he was unwilling to reveal the exact nature of talks with the government, he said, “We are open to any inquires in the petroleum field from India and its private sector.” Three years ago, Chad had put up four blocks for auction. China lost out at the time with one block going to the US and three blocks being bagged by Canada. But China came in last year, buying rights to an oil exploration block from Canada. Early this year, China National Petroleum Corporation announced that it struck commercial value oil for the first time in Chad.

An energy-hungry China has been fast gaining ground in Africa, which is being projected as the last frontier for developing oil and gas reserves and Chad is emerging as an important country for China. India’s policy in Africa is to build ties by offering “cost-effective and intermediate technologies” and human resource development and capacity building.

Officials here say the pattern of ties between India and Africa is different, and that it is a relationship based on technical help and capacity building and not just on assistance, whereas China’s labour policy and hunger for resources has generated bad press. However, China is also developing infrastructure in Chad from building new roads, providing irrigation and setting up mobile telephone networks. And the fact remains that India has lost out on oil exploration blocks to China in other parts of Africa.

But Chad is now open to an Indian presence. “If India comes, we will prefer India,” said Mr Abbassalah, adding that Chad also has a huge reserve of minerals, including uranium. “Yes, we have uranium reserves. We have already signed contracts with three companies for carrying out exploration activities. There are more blocks, and I would invite Indian companies,” he added.