India, China move to energy cooperation
NEW DELHI, Jan. 13 (UPI) -- India and China have decided to create a framework for joint bids for the acquisition of oilfields in third countries.
"If implemented, the framework would not end all competition between Indian and Chinese energy companies overseas," said an analyst.
Indian officials hope the two Asian giants would be able to end their competition for oilfields in Kazakhstan, Angola and Nigeria.
Indian Petroleum Minister Mani Shanakar Aiyar and China's National Development and Reform Commission Chairman Ma Kai signed a memorandum under which five state-owned oil companies of the two countries would begin the process of operational cooperation.
"This is full-spectrum, full-scope cooperation extending across the entire hydrocarbon chain," Aiyar said.
He said the priority of India and China was to develop local sources of gas. To this end, the two countries will cooperate in the fields of exploration, exploitation and enhanced oil recovery.
"India is ready to extend and receive partnership with China in upstream exploration and production as well as downstream activities like refining of petro products, transmission and city distribution of gas and laying transnational gas pipelines," Aiyar said.
State-owned Gas Authority of India Ltd. has signed two agreements with the China Petrochemical Corp. and the China National Offshore Oil Corp. for oil exploration in the two countries and other parts of the world.
Aiyar said the competition between India and China to acquire oil fields overseas was to the disadvantage of both, no matter who won the bid.
"If implemented, the framework would not end all competition between Indian and Chinese energy companies overseas," said an analyst.
Indian officials hope the two Asian giants would be able to end their competition for oilfields in Kazakhstan, Angola and Nigeria.
Indian Petroleum Minister Mani Shanakar Aiyar and China's National Development and Reform Commission Chairman Ma Kai signed a memorandum under which five state-owned oil companies of the two countries would begin the process of operational cooperation.
"This is full-spectrum, full-scope cooperation extending across the entire hydrocarbon chain," Aiyar said.
He said the priority of India and China was to develop local sources of gas. To this end, the two countries will cooperate in the fields of exploration, exploitation and enhanced oil recovery.
"India is ready to extend and receive partnership with China in upstream exploration and production as well as downstream activities like refining of petro products, transmission and city distribution of gas and laying transnational gas pipelines," Aiyar said.
State-owned Gas Authority of India Ltd. has signed two agreements with the China Petrochemical Corp. and the China National Offshore Oil Corp. for oil exploration in the two countries and other parts of the world.
Aiyar said the competition between India and China to acquire oil fields overseas was to the disadvantage of both, no matter who won the bid.
posted by Marko at 1/13/2006 09:08:00 AM
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