“Russia will always be a priority in India’s foreign and energy policy and the engagement between the two countries will remain a role model for global communities,” Pradhan said. “I see huge opportunities for cooperation in various verticals of the oil and gas sector. Our energy relations were never as strong as they have become in the last couple of years. Our engagement in the hydrocarbon sector, including some major investments, has become one of the key pillars of our bilateral relations,” he added. PSUs have already pumped in $15 billion in Russia, which is India’s largest investment destination in the oil and gas sector.
While underlining India’s intention to become a gas-based economy in the near future, Pradhan said that Russian supplies will help the country in stabilising fuel prices and will help it get closer to the goal of attaining energy security. He said that GAIL has already contracted 2.5 million tonnes per annum of LNG from Russia’s Gazprom for 20 years.
The engagement between Russia and India in the arena of hydrocarbons dates back to the 1960s, when Soviet oil and gas experts had helped ONGC strike Bombay High in the Arabian Sea in the 1960s.
The engagement between Russia and India in the arena of hydrocarbons dates back to the 1960s, when Soviet oil and gas experts had helped ONGC strike Bombay High in the Arabian Sea in the 1960s. Soviet technology had also helped India in the refining sector in the 1960s and 1970s. In 2001, ONGC Videsh Ltd in 2001 bought a 20 per cent stake in the Sakhalin-1 project in Far East Russia.
Another deal was struck a few years later when it bought Imperial Energy. More recently, ONGC has recently invested in Vankorneft and TasYuryah along with Indian Oil Corp (IOC), Oil India Ltd (OIL) and Bharat PetroResources Ltd (BPRL). In return, Russian firm Rosneft has bought a majority stake in Essar Oil for $12.9 billion.
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