To satiate its ever increasing appetite for energy and to diversify its energy basket, India is making increasing forays into countries in Latin America, Africa and to China’s dismay even the South China Sea.
In the last two years alone, Indian state-owned oil and gas companies have made investments worth an estimated `1,714 crore in oil and gas fields abroad.
The most recent acquisition of a 2.72 per cent stake by Oil and Natural Gas Corporation Videsh in the Azeri, Chirag and Guneshli (AGC) group of oil fields for $1 billion in the central Asian country of Azerbaijan marks yet another significant stride in India’s quest for energy security.
As the government told the Lok Sabha in a written reply during the just-concluded monsoon session of Parliament, ONGC Videsh produces oil and gas from 10 assets in eight countries, viz., Russia, Syria, Sudan, South Sudan, Venezuela, Brazil, Colombia and Vietnam.
Among the major investments by oil and gas PSUs in the last two years as per the government reply has been the Carabobo-1 Project in Venezuela.
By March 31 this year, ONGC Videsh had invested $128.20 (`712 crores based on Sunday’s exchange rate) over a two year period.
IOC and Oil India Ltd. to have made investments worth `177.34 crores and `210 crores, respectively in Venezuela.
In gas, GAIL has made investments worth $ 120 million (`666 crores) in the Eagle Ford Basin in the United States state of Texas which is yielding both oil and gas, said the government reply.
A measure of the importance India attaches to both increasing and diversifying its energy basket can also be had from the fact that what started as a mere unit in the ministry of external affairs in 2007 was upgraded to the status of a full-fledged “energy security division” in 2009.