India woos Africa to check Chinese influence

India is emulating Beijing as it attempts to raise oil and gas imports from the region to lower dependence on Middle-East.

Alarmed by China’s growing influence over energy-rich Africa, India is emulating Beijing as it attempts to raise oil and gas imports from the region to lower dependence on Middle-East.

India has taken a leaf out of China’s book in organising a two-day conference of energy ministers of 25 African countries from November 6 with a view to raise the level of engagement.

China, which during 1995-2006 struck energy deals worth USD 8 billion in the continent, last year hosted a mega conference of energy ministers of 36 African nations and promised investment of another USD 40-billion. India has an investment of USD 2 billion in the energy sector in Africa.

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“We are enhancing the level of engagement with African continent which is becoming an important non-OPEC energy source,” Petroleum Secretary M S Srinivasan said.

Prime Minister Manmohan Singh visited Nigeria last month with the same objective. But many in Africa would not have forgotten that his Cabinet had on two occasions stopped ONGC Videsh from investing in Nigerian oil fields.

An industry watcher said the Manmohan Singh Cabinet had not allowed OVL to take 100 per cent stake in oil blocks 323 and 321 and acquire a stake in the Apko oil field in the west African nation.

OVL had estimated one billion barrel of reserves when it made a USD 310 million bid for OPL 323 and USD 175 million for OPL 321. Now OPL 323 alone is assessed to hold 3.5 billion barrels after BG Group of UK took 20 per cent stake.

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Similarly, Apko field is certified to hold 1.14 billion barrels of proven reserves as against OVL’s estimate of 500-600 million barrels when it made the 2.4 billion dollar bid last year.