Nigeria wants India to pay $15b upfront for crude oil

The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, on Monday in India negotiated a $15 billion investment with terms to be agreed.
The investment will see the Indian Government make an upfront payment for crude purchase to Nigeria, which is to be repaid on the basis of firm Term Crude Contracts over some years.
This will also be in consideration of Indian public sector companies collaborating in the refining sector as well as exploration and production activities on a Government-to-Government basis by Indian PSU Companies, long term contracts for supply of crude to Indian PSU companies from Nigeria and also possibilities of executing CGD and LPG infrastructure projects by Indian PSU companies in Nigeria.
Kachikwu, who is currently on a three-day visit to India, concluded talks on the investments in Nigeria’s Oil and Gas sector in a bilateral meeting with his Indian counterpart in charge of Petroleum and Natural Gas, Shri Dharmendra Pradhan.
Both Ministers noted the existing and significant engagement between the two countries in the hydrocarbon sector, while acknowledging that Nigeria was one of the largest trading partners of India in Africa, which is dominated by import of crude oil and gas from Nigeria.
In 2015-16, India imported nearly 23.7 MMT of crude (nearly 12 per cent of India overall imports) and over 2 MMTPA of LNG from Nigeria.
Following this negotiation, the two countries have agreed to work on a Memorandum of Understanding to facilitate investments by India in the Nigerian Oil and Gas sector and specifically in areas such as Term Contract, participation of Indian companies in the refining sector, oil and gas marketing, upstream ventures, the development of gas infrastructure and in the training of oil and gas personnel in Nigeria.
The MoU is expected to be firmed up in December 2016 during PETROTECH-2016.
Both Ministers also agreed to strengthen the existing cooperation in Oil and Gas sector, in particular to explore investment opportunities for Indian Public and Private sector companies in Nigeria.
On the sidelines of the official visit, the Minister of State had one-on-one meetings with top executives of Indian Public Sector Oil and Gas companies and also representatives of some Indian private sector Oil and Gas companies.