| India, with little oil reservation, is the world fourth oil consumer. According tothe BP Statistic Review of World Energy2011, by the end of2010, the proven oilreservation of India only accounts for0.7percent of the overall world oil reservation.Meanwhile, the oil demand of India is increasingly growing. Therefore, the externaldependence degree of India’s oil industry is high. In2010, the foreign dependencedegree of Indian’s oil industry reaches75percent.Nigeria, with second largest oil reservation of Africa, is the Africa’s largestoil-producing country. India and Nigeria had started oil cooperation since1960s. Atthe very beginning, the two countries’ cooperation was limited to oil importing andexporting. Nowadays, the oil cooperation between the two countries has diversified.In addition to importing oil from Nigeria, India also began to investing in Nigeria’supstream and downstream oil industry.From2005, India began to invest in the Nigeria’s upstream oil industry. Thereare two main types of investment: bidding for the Nigeria’s oil blocks and equityparticipation. India’s investment in the Nigeria’s downstream oil industry is just at thebeginning, and most cooperation projects are still in the works.Looking forward to the future of India and Nigeria oil cooperation, the twocountries will further their cooperation not only in the upstream oil industry, but alsoin the downstream oil industry. |
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