Nigeria Set To Sign $15b Oil Deal With India
By SOLA SADIQ
Barring any last minute hiccups, a Memorandum of Understanding, MoU for a $15billion oil deal between Nigeria and India is expected to be firmed up before year-end, oil industry sources have revealed.
The deal would allow the India government, a long time buyer of Nigeria’s crude, to make an upfront payment to Nigeria for crude purchases.
This is to be repaid on the basis of firm term crude contracts over some years and in consideration for Indian companies collaborating in the refining sector, as well as exploration and production activities on a government-to government partnership.
About two months ago, Nigeria’s Minister of Petroleum Resources, Dr. Ibe Kachikwu, embarked on a three-day visit to India, during which he held bilateral talks with his Indian counterpart, Shri Dharmendra Pradhan.
It would be recalled that in 2014, India took over from the United States of America, USA as the largest importer of Nigeria’s oil. While India imports 30% of Nigeria’s crude, the US, which initially reduced its oil demand from Nigeria to 250,000 barrels per day, later stopped oil imports from Nigeria due to increased domestic shale oil and gas production.