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Current Affairs

Indian companies aiming to explore Russian oilfields

Date: 02 September 2019 Tags: Industries

Issue

 

A consortium of Indian oil firms is in talks to buy a significant stake in the eastern cluster oil fields in Russia with investments running into billions of dollars.

 

Background

  • Indian energy companies have so far invested close to $10 billion in acquiring stakes in hydrocarbon assets in Russia.

  • The Russian oil industry claims to be in need of huge investments. Strong growth in the Russian economy means that local demand for all types of energy sources (oil, gas, nuclear, coal, hydro, electricity) continues to grow.

Details

  • A deal is likely to be announced at the Eastern Economic Forum and the Annual Bilateral Summit between Prime Minister Narendra Modi and Russian President Vladimir Putin in Vladivostok regarding India’s participation in Oil exploration in Russia.

  • Indian firms are expected to invest in Russia’s upstream like Petroleum sector while Russian firms are expected to invest in India's downstream services sector.

Petroleum sector in Russia

  • The petroleum industry in Russia is one of the largest in the world. Russia has the largest reserves and is the largest exporter of natural gas. 

  • It has the second largest coal reserves, the eighth largest oil reserves, and is one of the largest producers of oil. It is the third largest energy user.

  • Russia is by far the world's largest natural gas exporter.