India and Azerbaijan to cooperate in oil & gas sector and other areas

India and Azerbaijan have agreed to cooperate in several areas including oil & gas sector and Indian companies are set to play a greater role in the development of Azerbaijan's rapidly expanding oil and gas industry. This was the result of a meeting last week between the President of Azerbaijan, Mr. Ilham Aliyev and the visiting Minister of State for Commerce, Shri Jairam Ramesh at Baku. At the end of a 45-minute discussion, Mr. Aliyev consented to ONGC Videsh and SOCAR, the state-owned oil and gas exploration company of Azerbaijan starting talks for cooperation for ONGC Videsh's investments in hydrocarbon-rich Azerbaijan.

ONGC Videsh has already invested close to $ 5 billion in 15 countries around the world, half of which is in Russia alone and that ONGC Videsh has much to offer to Azerbaijan, particularly in fields where production is declining. Mr. Aliyev sought India's assistance in enhanced oil recovery and deep sea drilling. Shri Ramesh also offered GAIL's expertise in gas-based petrochemicals and city-gas distribution. To begin with, ONGC Videsh and GAIL will participate in the Caspian Sea Oil and Gas Exhibition being held in Baku, June 3-4, 2007. Shri Ramesh also briefed the President of India's interests in exploring for gold in Azerbaijan, particularly since India is now the world's largest importer of gold. MMTC and NMDC will work with their Azerbaijani counterparts to identify specific areas where prospecting and appraisal work can be undertaken.

Mr. Aliyev also expressed deep appreciation for India's offer to help establish a centre for education and training in IT in Baku. The President agreed with the observations made by Shri Ramesh that India's great strength lies in skills training and human resource development, particularly in management, law and science and technology. Of the 100 Azeri students who are to be sent abroad for higher education this year, it is expected that 20 will come to India.

Shri Ramesh also offered India’s assistance in tapping the high wind energy potential in Azerbaijan. The Minister informed the Azerbaijan President that Indian companies like Vestas and Suzlon have become globally prominent and already about 4500 MW of wind energy capacity has been established in India. Azerbaijan President and other leaders also expressed hope that Indian pharmaceutical companies would consider moving beyond distribution and set up manufacturing facilities in Azerbaijan.

During his visit, Shri Jairam Ramesh and Mr. Haiyder Babayev, the Minister for Economic Development of Azerbaijan also signed an agreement that sets up a Joint Intergovernmental Commission on Trade, Investment and Economic Cooperation. The Agreement, which has been on the anvil for almost five years, is expected to provide a fillip to both commercial and cultural exchanges between the two countries. India has also offered technical assistance to Azerbaijan to facilitate its entry into the WTO. Meanwhile, President Aliyev accepted the invitation from Shri Ramesh to visit India at the earliest.

Source : Press Information Bureau

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