Rosneft is betting that south Asia will be a fast-growing market for its oil, and is keen to increase its profits from the region by investing in downstream infrastructure such as refineries and petrol stations.
Modi also met Qatari businessmen and encouraged them to invest more in India, calling it "a land of opportunity." The Qatar Investment Authority has several large-scale investments in India, including a more than $1 billion stake in telecommunications company Bharati Airtel. Qatar Airways has expressed interest in expanding its routes to India and in buying a stake in budget airline IndiGo.
The closed transaction is symbolic for both the companies and marks transition to a new level of cooperation in the Russian-Indian relations in sphere of energy. ONGC gets substantial interest and relevant rights in one of the biggest large-scale projects of Rosneft of the last decade, whereas Rosneft retains major shares in the project and will operate on the field through the operator company RN-Vankor.
India said Monday it will invest up to $500 million in a deal to develop a strategic port in Iran and both countries planned a number of projects they say are worth hundreds of millions of dollars.
Rising incomes in China, India, and other emerging Asia economies are a key driver of the global energy outlook. Developing Asia accounts for more than half of the projected increase in global energy use through 2040. This increase will have a profound effect on the development of world energy markets. Clean energy technologies play an important role in the outlook, with renewables expected to be the fastest-growing energy source.
"Everybody is trying to get a big stake in India--it is the biggest growing market in Asia," said Amrita Sen, chief oil analyst at London-based consultancy Energy Aspects.
Saudi Arabia is the largest supplier of crude oil to India, where oil demand grew by 5.7% last year and is expected by the International Energy Agency to increase 6.3% this year.
The board of India’s Oil & Natural Gas Corp. Ltd. approved a $5-billion offshore oil and natural gas development plan for the Krishna-Godavari basin off the country’s east coast.
India is replacing China as the center of the world’s oil demand growth as its economy expands faster than any other major country and Prime Minister Narendra Modi has made energy security a priority for the nation, which imports 80 percent of its oil requirements.
Gasoline production is set to grow in 2016 due to the commissioning of Indian Oil Corp.'s 2.9 million mt/year continuous catalytic reformer at its greenfield 15 million mt/year (300,000 b/d) Paradip refinery, and completion of Bharat Petroleum Corp. Ltd.'s gasoline capacity expansion at its Kochi refinery by 6 million mt/year to 15.5 million mt/year (310,000 b/d) sometime in May.