Why India has bought stakes in UAE Oil & Gas block??
In this video, we will discuss why India India has bought stakes in UAE Oil & Gas block??
Reference -
https://economictimes.indiatimes.com/industry/energy/oil-gas/india-wins-piece-of-abu-dhabi-oil-with-stake-in-6-billion-field/articleshow/62869244.cms
https://www.ft.com/content/7a7d092a-0efa-11e8-940e-08320fc2a277
https://in.reuters.com/article/adnoc-india-oil/ongc-led-group-gets-stake-in-adnoc-offshore-oil-concession-idINKBN1FU0A3
https://www.bloomberg.com/news/articles/2018-02-10/india-is-said-to-win-first-stake-in-abu-dhabi-offshore-oil-block
Transcript -
Hello Friends, welcome to Real Quick Info channel. Lets discuss about today's topic.
You may know, In the presence of Indian Prime Minister Modi, Abu Dhabi National Oil Company has signed a deal to award 10 percent share of the Lower Zakum oil field to a group of Indian companies.
As per this concession agreement, Now Indian companies can pump crude oil from lower Zakum field for next 40 years.
For this stake purchase, India has to pay 600 Million Dollars upfront. While financial details of this deal are still awaited. But as far as we understand from Concession agreement, While United Arab Emirates continue to own the land and its resources including crude oil. But Now Indian companies have been granted ownership to discover the oil on that piece of land and if they find oil, they will own it.
Besides what India has spent to purchase the stake, Indian companies will have to pay tax and royalty.
Having been in the production since the year 1963, Lower Zakum is proven oil field. Hence, Minimal risk is involved in this stake purchase.
With this concession agreement, for the first time, India is progressing from being a buyer of gulf oil to Investing in the Gulf oil and gas sector. In this investment, The risk is involved so is reward.
In the next 20 years, Indian oil consumption is going to be more than double.
In order to meet such a rapid rise, we can no longer remain just a buyer of crude oil.
Moreover, Right now United Arab Emirates is supplying 8 percent of total oil India is importing.
With this deal, United Arab Emirates will be able to boost its oil production and tap the rapidly growing Indian market demand.
While oil prices are low, its very good time to secure long term concession agreement to ensure reliable oil supply to meet future Indian oil needs.
Though India is focusing on renewable energy sources, but given the rapidly growing Indian energy demand, we must have multiple sources of energy. Securing cheap long term supply of crude oil is a strategic decision. we should all welcome it.
Moreover Abu Dhabi National Oil Company is also supplying around 6 million barrels of oil, for Indian strategic oil reserve in Mangalore, ensuring Indian energy security.
As you can see, With these two deals, The transactional relationship in between United Arab Emirates and India has transformed into strategic relationship.
As per your views, Should India not have taken risk to buy 10% stake of Lower Zakum oil field.
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends.
Tag
India,
UAE,
India UAE friendship,
India UAE relationship,
Modi in UAE,
UAE visit of Modi,
Modi visiting UAE,
Why Modi visited UAE,
India buying oil and gas block in UAE,
Deals signed during UAE visit of Modi,
Modi,
ONGC buying stake in oil gas block of UAE,
Mangalore strategic oil reserve,
India UAE strategic reserve,
Importance of India buying stakes in UAE oil and gas block,
Indian increasing oil demand,
Indian rising oil demand,
Rising prices of crude oil,
Strategic relationship in between India and UAE,
You may know, In the presence of Indian Prime Minister Modi, Abu Dhabi National Oil Company has signed a deal to award 10 percent share of the Lower Zakum oil field to a group of Indian companies.
As per this concession agreement, Now Indian companies can pump crude oil from lower Zakum field for next 40 years.
For this stake purchase, India has to pay 600 Million Dollars upfront. While financial details of this deal are still awaited. But as far as we understand from Concession agreement, While United Arab Emirates continue to own the land and its resources including crude oil. But Now Indian companies have been granted ownership to discover the oil on that piece of land and if they find oil, they will own it.
Besides what India has spent to purchase the stake, Indian companies will have to pay tax and royalty.
Having been in the production since the year 1963, Lower Zakum is proven oil field. Hence, Minimal risk is involved in this stake purchase.
With this concession agreement, for the first time, India is progressing from being a buyer of gulf oil to Investing in the Gulf oil and gas sector. In this investment, The risk is involved so is reward.
In the next 20 years, Indian oil consumption is going to be more than double.
In order to meet such a rapid rise, we can no longer remain just a buyer of crude oil.
Moreover, Right now United Arab Emirates is supplying 8 percent of total oil India is importing.
With this deal, United Arab Emirates will be able to boost its oil production and tap the rapidly growing Indian market demand.
While oil prices are low, its very good time to secure long term concession agreement to ensure reliable oil supply to meet future Indian oil needs.
Though India is focusing on renewable energy sources, but given the rapidly growing Indian energy demand, we must have multiple sources of energy. Securing cheap long term supply of crude oil is a strategic decision. we should all welcome it.
Moreover Abu Dhabi National Oil Company is also supplying around 6 million barrels of oil, for Indian strategic oil reserve in Mangalore, ensuring Indian energy security.
As you can see, With these two deals, The transactional relationship in between United Arab Emirates and India has transformed into strategic relationship.
As per your views, Should India not have taken risk to buy 10% stake of Lower Zakum oil field.
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends.
Tag
India,
UAE,
India UAE friendship,
India UAE relationship,
Modi in UAE,
UAE visit of Modi,
Modi visiting UAE,
Why Modi visited UAE,
India buying oil and gas block in UAE,
Deals signed during UAE visit of Modi,
Modi,
ONGC buying stake in oil gas block of UAE,
Mangalore strategic oil reserve,
India UAE strategic reserve,
Importance of India buying stakes in UAE oil and gas block,
Indian increasing oil demand,
Indian rising oil demand,
Rising prices of crude oil,
Strategic relationship in between India and UAE,
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