3 min read.Updated: 14 Nov 2021, 06:35 PM ISTLivemint
This meeting with the oil industry captains of UAE, one of major crude oil suppliers to India comes in the backdrop of transportation fuel prices being at a record high in India
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New Delhi: India’s petroleum and natural gas minister Hardeep Singh Puri will meet United Arab Emirates’ energy and infrastructure minister Suhail Mohamed Faraj Al Mazrouei and Abu Dhabi National Oil Company (ADNOC) managing director and group chief executive Sultan Ahmed Al Jaber next week “to discuss issues of energy cooperation within the overall framework of India-UAE Strategic Partnership."
This meeting with the oil industry captains of UAE, one of major crude oil suppliers to India comes in the backdrop of transportation fuel prices being at a record high in India. India is dependent on imports to meet 85% of its oil demand and 55% of its natural gas requirements.
Higher crude oil prices, if not checked, will have an impact on global economic recovery, Puri has earlier stated.
“Shri Hardeep S. Puri, Minister of Petroleum and Natural Gas & Housing and Urban Affairs, will lead an official and business delegation to UAE from 15 – 17 November 2021, to attend the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) on the invitation of H. E. Suhail Mohamed Faraj Al Mazrouei, Minister of Energy and Infrastructure of UAE," India’s ministry of petroleum and natural gas said in a statement on Sunday.
India has raised the high oil price issue with Opec secretary-general Mohammad Sanusi Barkindo during his recent visit to India. The discussions also focussed on the need for finding a balance between the needs of suppliers and consumers. India has been raising the issue with major oil producing countries such as Saudi Arabia, Kuwait, Qatar, UAE, Bahrain, US, and Russia.
“Shri Puri is scheduled to meet his counterparts from UAE, H.E. Suhail Mohamed Faraj Al Mazrouei, Minister of Energy and Infrastructure, and H.E. Dr. Sultan Ahmad Al Jaber, Minister of Industry & Advanced Technology, MD & Group CEO, ADNOC, to discuss issues of energy cooperation within the overall framework of India-UAE Strategic Partnership. The Minister will also have meetings with his counterparts from various countries and Heads of international energy organizations and CEOs of global oil & gas companies, who are attending the ADIPEC- 2021," the statement added.
Adnoc is one of the only two firms to commit to India’s crude oil reserve programme to date. It has also partnered with Saudi Aramco and Indian state-run oil companies for setting up the world's largest oil refinery and petrochemical complex in Ratnagiri. The project has hit the skids, after protests from farmers and Shiv Sena which is in power in Maharashtra with its alliance partners.
“During the visit, the minister will participate in the inaugural Ceremony of ADIPEC and also take part in a Ministerial Round Table titled “Charting the Climate Action Path from COP 26 to COP 27"," the statement said and added, “The Minister will give a keynote address during the Road Show on “Investment Opportunities in the Exploration and Production Sector in India" which DGH will be conducting on the sidelines of ADIPEC, to attract foreign investment by global oil and gas majors."
The Opec accounts for a majority of India’s crude oil imports and around 40% of global production. The Opec-plus arrangement comprising of 23 countries including Russia and allies have cut production, resulting in a global rally in crude oil prices.
India has also been requesting Opec for a reduction in official selling price, the extension of credit period from existing 30 days to 90 days from bill of lading, freight discount and open credit based on the creditworthiness of Indian state-run refineries. India, which is one of the major Opec consumers, has called for a global consensus on “responsible pricing". Also, India has consistently been pitching for a price and terms correction on the so-called Asian premium.
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