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Indian Minister for Petroleum & Natural Gas, Mr. Mani Shankar Aiyar returns to India from Bucharest today after successful visits to Turkey & Romania. He visited the two countries to explore new opportunities for the Indian hydrocarbon sector and Indian industry in general, as the head of a delegation made up of representatives of the Indian petroleum industry as also businessmen from the Confederation of Indian Industry.
Mr. Aiyar was in Turkey between 28-30 June as the guest of the Turkish Minister for Energy & Industry, Mr. Hilmi Guler, with whom he had extensive delegation-level discussions. The two ministers agreed to vigorously pursue new avenues for cooperation in light of Turkey’s ancient civilisational links to the hydrocarbon-rich Turkic states of Central Asia and the Caspian region (Azerbaijan, Kazakhstan, Turkmenistan and Uzbekistan), which has acquired a new contemporary significance following the inauguration of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline which terminates on Turkey’s southern coast at the Eastern extremity of the Mediterranean. Moreover, the BTC pipeline, and, in particular, the security dimensions of that pipeline set a critical precedent for the proposed Iran -Pakistan- India pipeline.
To this end, the Indian Minister and his accompanying delegation visited Ceyhan to see the oil terminal at the end of the BTC pipeline and held detailed discussions with experts from BOTAS, the Turkish partner in the pipeline. The Indian Minister also pursued in Istanbul the discussions he had earlier initiated in Baku with BP, the principal promoter of the BTC pipeline. It was learnt with interest that the security aspects of the BTC pipeline are supervised by a trilateral Security Commission of the three countries, along with the international consortium, which has built and is operating that pipeline. The prospects of India accessing Caspian oil at Ceyhan were also further explored.
The two Ministers agreed to establish a Joint Working Group (JWG) under the overall aegis of their Joint Commission to promote cooperation in the oil and gas sector in each other’s countries as well as in third countries. The JWG would be headed by the Petroleum Secretary from the Indian side and the Energy Under Secretary from the Turkish side.
Specific areas of cooperation to be pursued within the JWG by India and Turkey, as agreed to by the two Ministers, include the following:
i) In the field of exploration and production (E&P): Turkish companies would not only participate in subsequent NELP rounds in India but would also seek to explore blocks under ONGC’s open-acreage policy.At the same time, Indian companies would also cooperate with Turkish companies to pursue E&P contracts in Turkey.
ii) The Indian Minister invited Turkish companies to invest in India’s ambitious refinery projects, particularly the export-oriented refineries proposed to be set up in the Eastern and Western coastal areas.
iii) The two Ministers agreed that Indian and Turkish companies would jointly pursue oil and gas projects in third countries. Given Turkey’s special position in Central Asia, it was agreed that Turkey would play a lead role in this region, while Indian companies would take the lead in respect of proposals in Southeast and East Asia, Africa and Latin America.
iv) Pipelines: The Turkish Minister briefed the Indian delegation about the oil and gas pipeline proposals under consideration which would bring Central Asia and Caspian hydrocarbon resources to Europe across Turkey. He invited Indian companies to associate themselves with the Turkish companies in these projects. In this context, he specifically recalled the successful partnership between an Indian company, ‘Punj’ and the Turkish state company ‘BOTAS’ in laying Turkish section of the BTC pipeline project.
The Turkish Minister also agreed to share with India the knowledge and experience of his companies relating to pipeline projects, particularly the provisions to enhance the security of the pipelines.
While in Istanbul, Petroleum Minister Aiyar actively participated in the major international oil and gas conference titled: “East Meets West” which is organized annually in Istanbul by the Turkish Government in cooperation with the Cambridge Energy Research Association [CERA], headed by Dan Yergin, author of “The Prize”. CERA have agreed to tender their expert advice, when asked, about questions relating to the Iran-Pakistan-India and other pipelines with which India is involved. Petroleum Minister spoke on two occasions at the Conference: he addressed the Opening Session and, on the next day, delivered the key-note address at the luncheon meeting.
In his address at the inauguration of the conference, Mr. Aiyar set out India’s vision of cooperation among the Asian countries in the hydrocarbon sector founded on a network on oil and gas pipelines, stressing that Istanbul is not only where East meets West but also where North meets South. Considering that Asian countries such as China, India and Republic of Korea had some of the highest growth rates and with Japan, were also the principal consumers of Asian oil and gas production, Mr. Aiyar underlined the key role that Turkey must play not only in re-establishing links across Eurasia but also in fostering Pan-Asia cooperation in the hydrocarbon sector.
At his luncheon address, Mr. Aiyar highlighted India’s achievements in significantly expanding its oil and gas potential through a robust programme of exploration involving Indian public and private companies as also foreign companies. Petroleum Minister said that, given the recent gas discoveries along the Eastern coast of India, there was strong likelihood that the Bay of Bengal would emerge as “the North Sea of South Asia”. He called on international companies to actively participate in exploration activity in India as also in setting up refineries, many of which were envisaged for exporting petroleum products.
In his remarks at the India-Turkish Business Forum, Mr. Aiyar highlighted the vibrant character of the Indian economy and its recent achievements in the areas of industry, information technology and hydrocarbons, and the vast potential for Indo-Turkish cooperation in this regard.
Visit to Romania
Petroleum Minister and his delegation visited Romania between 1-4 July at the invitation of Mr. Ioan Codrut Seres, Minister of Economy & Commerce. Romania had played a significant role in the development of India’s hydrocarbon capabilities in the 1950s & 1960s when it had set up the Guwahati, Barauni and Haldia refineries. However, over the last 20 years, the bilateral relationship had become moribund. After the fall of the Ceaucescu regime in 1989, Romania has become a successful democracy while liberalizing its economy and vigorously pursuing its accession to the European Union.
Petroleum Minister described his visit to Romania as a “voyage of re-discovery”, and that his principal mission was to re-launch India-Romania cooperation in the hydrocarbon sector. In Bucharest, Mr. Aiyar had meetings with Mr. George Copos, Deputy Prime Minister, and Mr. Ioan Codrut Seres, Minister of Economy & Commerce. The Minister and his delegation also visited the Romanian University of Petroleum and Gas at Ploesti and the Chamber of Commerce and Industry of Prahova County, headquarters of Romania’s hydrocarbons industry.
After delegation-level discussions between the Indian Petroleum Minister and the Romanian Minister of Economy & Commerce, the following agreements were signed:
i) An inter-governmental Memorandum of Understanding on cooperation in the areas of oil and natural gas. The MoU has identified the following areas of cooperation which are to be pursued by the two sides: Research and development; design, engineering and construction, pertaining to the oil and gas industry; manufacturing and upgradation of drilling rigs and petrochemical processing units; energy efficiency and conservation and environment protection, and technical cooperation.
ii) MoU on cooperation between the Indian University of Petroleum & Energy Studies, Dehradun, and the Romanian Petroleum and Gas University, Ploiesti;
iii) MoU on cooperation between the K.D.Malaviya Institute of Petroleum Exploration, Dehra Dun, and the Romanian Petroleum and Gas University, Ploiesti, and,
iv) MoU on cooperation between the Confederation of Indian Industry (CII) and the Chamber of Commerce & Industry, Prahova County.
The two Ministers identified the following specific areas for bilateral cooperation:
i) Cooperation in the area of research and development: Given that large tracts of India have remained un-explored on account of their unique geological configuration, it was agreed that Romania, with its substantial knowledge base, would function as a major partner in this new exploration effort.
ii) Refining: The Indian Minister invited Romanian companies to invest in India’s new refinery projects. At the same time, he said, Indian companies would be happy to invest in Romanian refineries to generate new capacities for export of petroleum products to different parts of Europe.
iii) Cooperation in third countries: The two Ministers noted that, given the considerable domestic capabilities that exist in India and Romania, the coming together of their companies as joint venture partners would make them effective role players in projects in different parts of the world.
iv) Transnational oil and gas pipelines: The two sides noted that each of them is actively pursuing transnational oil and gas pipelines in its region. It was felt that Indian and Romanian companies could set up joint ventures to pursue these projects.
The two Ministers agreed that the first meeting of the Joint Working Group (JWG), set up within the framework of the MoU on hydrocarbon cooperation would take place in Bucharest in September 2005 when the next meeting of the India-Romania Joint Commission would also take place. The decisions of the JWG would be incorporated in the Agreed Minutes of the Joint Commission.
The two Ministers also agreed that, in order to realize the proposals for bilateral cooperation to be pursued by them, the organisations/companies of both countries should enter into MoUs with their counterpart bodies to pursue specific cooperation proposals. It was agreed that these company-to-company MoUs would be signed during the first meeting of the JWG in Bucharest.
The Indian Petroleum Minister invited Mr. George Copos, Deputy Prime Minister and Mr. Ioan Codrut Seres, Minister of Economy & Commerce, to visit India in the near future. Mr.Seres has indicated that he might be able to participate in the 50th anniversary celebrations of the Oil and Natural Gas Commission (ONGC) to be launched in the presence of the President of India at Dehra Dun on 14 August, 2005.
RCJ/kc Visits Turkey & Romania (050705)
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