Aiyar takes Panchsheel flavour to China

According to sources, China’s National Development and Reforms Commission has approved six MoUs, including an agreement on setting up a Joint Working Group on Hydrocarbon Cooperation—the network platform for bilateral activity.

On his visit, the minister plans to highlight the buying power of both nations as net energy importers, for a joint leverage of European oil and gas. Talks have so far thrown up the possibility of working together in the Caspian, as well as in West Africa and Latin America.

As both India and China aggressively pursue overseas energy sources, Aiyar will pitch partnership between the two as being of greater mutual advantage than a hostility that only benefits sellers who play upon it to jack up commodity prices.

Indian firms have been losing out to the Chinese in the battle for oil and gas assets abroad, save for the recent cooperation between ONGC Videsh Ltd (OVL) and the China National Petroleum Corp (CNPC) over acquiring PetroCanada’s assets in Syria.

OVL, however, lost to Chinese firms in the race for PetroKazakhstan. CNPC has also managed to keep OVL at bay in Russia’s Yugansneftegaz; the two are still in a race for equity in the company.