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Naik invites oil majors to invest in India

By Our Special Correspondent

NEW DELHI SEPT. 22. Anxious to curb the "extreme volatility in oil prices" witnessed over the past couple of years, the Union Petroleum Minister, Ram Naik, today called for evolving mechanisms that would ensure stable prices at levels affordable by oil importing developing countries.

Currently in Osaka, Japan, to attend the International Energy Forum, Mr. Naik advocated such a mechanism to provide relief to developing countries when the oil prices cross a pre-decided band.

Ministry sources said Mr. Naik raised the issue while addressing the session on "Facilitating Investments in Energy Sector" and, later, at his press conference. He said that stability in oil prices at sustainable levels was imperative for the economic development of countries such as India with heavy dependency on hydrocarbons.

He also highlighted the opportunities in the Indian hydrocarbon sector and invited multi-national oil companies to make investments in India. Putting the estimated investment requirement till 2025 at $ 51 billion in the refining sector and $ 27.55 billion in the marketing sectors, he urged participating countries and companies to help expand India's oil industry. This would give them access to one of the top three countries with the highest growth in the consumption of petroleum products.

At the same time, Mr. Naik stressed the need to bring in technology that ensured sustainable production of energy in harmony with the investment. The challenge before the nation, he said, was to develop cost-effective technology in the downstream sector and produce high quality fuels that minimised emissions in the upstream sector.

Also, he dwelt at length on the "conducive climate" created by the Government for the overall growth of the energy industry. He mentioned the dismantling of the Administered Pricing Mechanism since April 1 and the fact that any company could obtain marketing rights in India if it commits to spend $ 400 million for development of hydrocarbon infrastructure over the next 10 years.

Warns BG, Enron and ONGC

UNI reports from Osaka:

Mr. Naik today gave a final warning to British Gas, Oil and Natural Gas Commission and Reliance Group to resolve their differences over the operatorship of two offshore oil fields.

Addressing a press conference at the 8th International Energy Forum, he said that he understood the differences between the British Gas and ONGC as well as Reliance but the issue must be settled by September 30 and work must continue at the Panna-Mukta and Tapti oil fields.

Mr. Naik also held a series of meetings with Ministers from oil producing countries, including Saudi Arabia. He said he told the forum and his interlocutors during the bilateral meetings about the high premium price India was paying to import crude oil.

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