India Set To Increase Energy, Oil Cooperation With Uzbekistan, Azerbaijan

India Set To Increase Energy, Oil Cooperation With Uzbekistan, Azerbaijan


Latest PIB reports coming in suggest that India is all set to co-operate with two Central Asian nations - Uzbekistan and Azerbaijan - in the Energy, Oil & Gas sector.Government Press ReleaseIndia and Azerbaijan have agreed to cooperate in several areas including oil & gas sector and Indian companies are set to play a greater role in the development of Azerbaijan's rapidly expanding oil and gas industry. This was the result of a meeting last week between the President of Azerbaijan, Mr. Ilham Aliyev and the visiting Minister of State for Commerce, Shri Jairam Ramesh at Baku. At the end of a 45-minute discussion, Mr. Aliyev consented to ONGC Videsh and SOCAR, the state-owned oil and gas exploration company of Azerbaijan starting talks for cooperation for ONGC Videsh's investments in hydrocarbon-rich Azerbaijan.ONGC Videsh has already invested close to $ 5 billion in 15 countries around the world, half of which is in Russia alone and that ONGC Videsh has much to offer to Azerbaijan, particularly in fields where production is declining. Mr. Aliyev sought India's assistance in enhanced oil recovery and deep sea drilling. Shri Ramesh also offered GAIL's expertise in gas-based petrochemicals and city-gas distribution. To begin with, ONGC Videsh and GAIL will participate in the Caspian Sea Oil and Gas Exhibition being held in Baku, June 3-4, 2007. Shri Ramesh also briefed the President of India's interests in exploring for gold in Azerbaijan, particularly since India is now the world's largest importer of gold. MMTC and NMDC will work with their Azerbaijani counterparts to identify specific areas where prospecting and appraisal work can be undertaken.Mr. Aliyev also expressed deep appreciation for India's offer to help establish a centre for education and training in IT in Baku. The President agreed with the observations made by Shri Ramesh that India's great strength lies in skills training and human resource development, particularly in management, law and science and technology. Of the 100 Azeri students who are to be sent abroad for higher education this year, it is expected that 20 will come to India.Shri Ramesh also offered India’s assistance in tapping the high wind energy potential in Azerbaijan. The Minister informed the Azerbaijan President that Indian companies like Vestas and Suzlon have become globally prominent and already about 4500 MW of wind energy capacity has been established in India. Azerbaijan President and other leaders also expressed hope that Indian pharmaceutical companies would consider moving beyond distribution and set up manufacturing facilities in Azerbaijan.During his visit, Shri Jairam Ramesh and Mr. Haiyder Babayev, the Minister for Economic Development of Azerbaijan also signed an agreement that sets up a Joint Intergovernmental Commission on Trade, Investment and Economic Cooperation. The Agreement, which has been on the anvil for almost five years, is expected to provide a fillip to both commercial and cultural exchanges between the two countries. India has also offered technical assistance to Azerbaijan to facilitate its entry into the WTO. Meanwhile, President Aliyev accepted the invitation from Shri Ramesh to visit India at the earliest.Uzbekistan: GAIL AgreementUzbekistan has agreed to open technical talks with GAIL for enabling the Indian company to start exploration activity in natural gas in the gas-rich Central Asian country . This materialised after meetings between the Prime Minister of Uzebekistan, Mr. Savkit Mirziyayev and the visiting Minister of State for Commerce, Shri Jairam Ramesh on April 13, 2007 at Tashkent. India has also offered to help establish a training institute for gas technology in Tashkent, along the lines of the Jawaharlal Nehru IT Centre in the Uzbek capital that was inaugurated by the Prime Minister, Dr. Manmohan Singh last year. GAIL has identified 4 specific blocks for gas exploration. So far Russia, China and South Korea have invested in gas exploration in Uzbekistan. Shri Jairam Ramesh was accompanied in his meetings with the Prime Minister of Uzbekistan and other senior ministers by Shri Mukund Chaudhury, Managing Director of CLC Textiles which has recently invested $ 81 million in cotton spinning and yarn in Uzbekistan. A further investment of $ 40 million is planned by CLC Textiles over the next two years. The Uzebk Prime Minister appreciated the operations of CLC Textiles and expressed Uzbekistan's keenness for similar investments by Indian companies in pharmaceuticals and leather. Shri Jairam Ramesh promised to talk to Indian companies in this regard soon.Shri Jairam Ramesh also conveyed to the Uzbek Prime Minister, India's interest in exploring for gold in gold-rich Uzbekistan since India is now the world's largest importer of gold. The Uzbek government has agreed to consider a proposal from MMTC/ National Mineral Development Corporation (NMDC) for gold exploration but wants this proposal to include value-addition investments in Uzebekistan itself, like in gold jewellery. MMTC and NMDC will now formulate a proposal for submission to the Uzbek government in the next 30 days.The Uzbek Prime Minister underscored the special cultural and political relationship that exists between India and Uzbekistan. He also mentioned the great personal regard and respect that the President of Uzbekistan has for Dr. Manmohan Singh whom he has known personally for over a decade and a half. He felt that the time was now ripe for taking the bilateral economic relationship to a whole new level and that Shri Jairam Ramesh's visit will contribute significantly to this.