Indian Prime Minister Narendra Modi receives Sheikh Abdullah in New Delhi. The two leaders discussed UAE, India expanding energy partnerships and investments….reports Rafeek Ravuther
Indian Prime Minister Narendra Modi hailed Indo-UAE relations as he received H.H. Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, and his accompanying delegation in New Delhi.
The two leaders discussed cooperation between the two countries in different fields and means of advancing the privileged bilateral relations to a higher level. The prime minister visited UAE in April and met various leaders including HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi.
Modi and Sheikh Abdullah also addressed prospects of widening the distinguished strategic ties between the UAE and India in the energy field, with a special focus on the partnerships and investments provided by the Abu Dhabi National Oil Company, ADNOC, particularly in the fields of exploration, refining, petrochemicals and petroleum products marketing.
The latest developments in the region and international scene were also discussed during the meeting.
Modi said Sheikh Abdullah’s visit to New Delhi will further bolster cooperation and friendly relationships between the two countries.
Sheikh Abdullah said that the strategic relationship between the two countries has witnessed a qualitative leap across different domains over the past few years, thanks to the political will of their leadership.
He also commended the significant contribution of the Indian community to the development drive in UAE and stressed that Indian residents in the county enjoy government and popular support and respect, and represent a bridge for bolstering ties between the two countries.
The Indian Prime Minister reaffirmed his country’s keenness to strengthening the friendly and cooperation ties with the UAE for the benefit of the two peoples.
Modi also lauded the UAE’s policy of tolerance, peaceful coexistence, cooperation and respect for all communities living in its territories.
The meeting was attended by Dr. Sultan bin Ahmad Sultan Al Jaber, Minister of State, CEO of ADNOC Group, Dr. Abdulrahman Al Banna, UAE Ambassador to India, and Mohamed bin Ali Alabbar, Chairman of Emaar Properties.
Common economic objectives underpin India-UAE relations. Since the 1980s, bilateral trade between the two countries has soared from $182 million to some $53 billion annually, of which $18 billion is oil related. By 2020 bilateral trade between the two countries is forecast to reach $100 billion as India’s economy gathers momentum.
Meanwhile, India’s energy demand is forecast to grow by more than any other country in the period to 2040, propelled by an economy that will expand more than five-times its current size and by population growth that will make it the world’s most populous country. Indian energy consumption is expected to more than double by 2040, accounting for 25 percent of the rise in global energy, and the largest absolute growth in oil consumption. Today, India is 82-percent dependent on imports to meet its crude oil needs, eight percent of which is supplied by the UAE.
Energy Partnership
Both the leaders expressed support for the on-going strategic dialogue, aimed at expanding energy partnerships between the two countries.
This came during a meeting between the two sides following a joint workshop organised by ADNOC and the Indian Ministry of Petroleum and Natural Gas on expanding investments and partnerships in the oil and gas industry, in both the UAE and India.
Sheikh Abdullah and Modi reiterated their governments’ wish to see deeper and stronger partnerships between the UAE and India in the energy sector, particularly in the fields of exploration, refining, petrochemicals and petroleum products marketing.
“The UAE is unwavering in its commitment to the strategic multi-lateral relationship with India and being a reliable partner in India’s energy security. We look forward to exploring further opportunities to expand our existing ties and to collaborating on new opportunities that will strengthen and deepen the rich and long-standing strategic relationship between our two countries,” said Sheikh Abdullah.
The New Delhi meeting between Sheikh Abdullah and Prime Minister Modi was also attended by Dr. Sultan bin Ahmad Sultan Al Jaber, Minister of State, and ADNOC Group CEO, and Shri Dharmendra Pradhan, India’s Minister of Petroleum and Natural Gas.
“India is an important market for ADNOC and we are keen to explore mutually beneficial investment and partnership opportunities, across the full value chain in both the UAE and India,” said Dr Al Jaber. “In particular, we see new opportunities for potential partners to invest, alongside us, in creating value from the UAE’s hydrocarbon resources. At the same time, we wish to support India in meeting its rapidly growing demand for crude oil, refined and petrochemical products through targeted investments in the Indian Downstream sector, as part of our international growth strategy.”
The one-day workshop was attended by ADNOC’s leadership team and senior representatives of India’s oil and gas industry. Among those present were executives from the ONGC-led consortium which was awarded a 10 percent stake in Abu Dhabi’s Lower Zakum concession area in February and the Indian Strategic Petroleum Reserves Ltd (ISPRL), an Indian government-owned company mandated to store crude oil for strategic needs. Last month ADNOC delivered the first 2 million barrels of 5.86 million barrels of UAE crude oil, to be stored at the ISPRL’s Karnataka facility, in Mangalore.
At the workshop, the ADNOC team detailed the investment and partnership opportunities in ADNOC’s operations, in particular the recently announced offshore and onshore exploration and production licenses, which, for the first time, have been opened for competitive bidding, and ADNOC’s downstream expansion plans. Opportunities for collaboration between ADNOC and India’s growing refining sector were also explored, as well as possible expansion of ADNOC’s relationship with ISPRL and the long-term supply of ADNOC crude oil and petrochemicals within India and petroleum products marketing and retail.
“The UAE has been an important partner in India’s energy security and ADNOC has played a key role in this. This year has been particularly remarkable with ADNOC has starting to fill up the Mangalore Strategic Cavern last month,” Indian Minister Pradhan said. “ADNOC has provided an upstream foothold to Indian companies in the Gulf region. This mutually advantageous relationship has immense potential which we tried to explore during the company level workshops today and the high-level government meetings.”
