New Delhi: With Prime Minister Narendra Modi who would meet US President Donald Trump, said Minister of Petroleum and Natural Gas Hardep Singh Puri that energy will remain a very strong part of the India-US relationship and he is hopeful about the bilateral energy problem that is in the prime minister's deliberations.
Modi is planned to meet Trump on Thursday. The US is currently the fifth largest oil supplier in India. During the period of April-November of the current tax, India imported $ 4.11 billion in crude oil from the US, 1.8% lower than $ 4.19 billion a year earlier.
“As a layman, I would be surprised if there is no discussion about energy. You already buy $ 20 billion (from energy). My answer to your question is that energy will remain a very strong part of the India-US relationship, “Puri said in an interview on Wednesday.
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With reference to the strong participation of the US in the current India Energy Week and discussions in the round table of the US-India Business Council, Puri said that American CEOs recognize the chance that India offers.
“This is the main theme of most CEOs. India is the most important global chance of energy. Many of them are energy companies. Some of them are upstream, some in technology, some in financing. So this is how the mood was in that huge round table, “Puri said.
About Russian oil stocks, which form about 38% of India's oil imports, Puri said that investments in Russia would lead to a long-term profit.
This is in the background of ONC Videsh Ltd and Oil India Ltd's dividends that are stuck in three producing assets in Russia. Indian companies have so far invested $ 16 billion in Russian energy assets. Ongc Videsh and Oil India have commitment in Sakhalin-1, Vankor and Taas-Yuryakh Neftegazodobycha.
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Puri said that the stuck dividends are not significant compared to the investments in the country, and that investments in oil and gas space must be viewed from a long-term perspective. “If you go for oil and gas investments, go with a bigger heart … If you do exploration and production, or do you do contracts? Don't set limits to your time. “
In the past three years, Russia has emerged as the top supplier of oil to India, supported by deep discounts. Although the discounts have been reduced from around $ 30 per barrel to around $ 2.5-4 per barrel in 2022 now, Russian oil consists of approximately 37.6% of the total oil import from India. From November, Russia supplied crude oil worth $ 35.76 billion, 18.26% higher of $ 30.24 billion in the same period last tax.
This is amidst successive production -cut announcements of the OPEC+ grouping that Russia comprises.
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India has diversified its energy sources in an attempt to reach energy security, because it imports more than 85% of its oil requirements. The country is particularly vulnerable because any rise in global prices can influence its import invoice, cause inflation and increases the trade deficit of the country.
Indian companies have also negotiated with their Russian counterparts for better discounts and deals. In May last year, Mint reported that all state -owned companies and private oil refineries would jointly negotiate higher discounts and better conditions with Russian suppliers.
