1 Africa India Partnership in Hydrocarbons Ashok Dhar Sr. Vice President, IBD Reliance Industries Ltd. India 11 th African Oil and Gas, Trade and Finance Conference Nairobi, May 2007 NOT AN OFFICIAL UNCTAD RECORD

2 Africa and India Geographical Proximity and Historic ties Abundance of natural resources –Oil’s increasing importance –Economic advancement by exploiting natural resources –Importance for world economy, Oil Exports –Destination for FDI, Knowledge and Technology Africa accounts for about 11% of world oil production and 7% of reserves Africa accounts for about 6% of NG production and 8% of NG reserves Traditional trade partners High priority for rejuvenation of trade ties We are striving for economic progress of our people

3 Africa and India Africa and India energy linkages can impart rich and contemporary value to our traditional ties. Source: Compiled from Country Data Profile, World Bank 2005 and BP Statistical Review 2006 * States ** Union Territories

4 India – An economy on fast track Large and Fast growing economy Large consuming class Diversified Economy –Exporter of Services –Exporter of Manufactured goods 5 th largest consumer of commercial energy –Accounts for 3% of world oil consumption –Per capita oil consumption is 110 Kg of Oil Net Importer of Crude Oil –India Imports about 75% of its oil requirement –Oil imports form 30% of total Indian imports bill –About 16% of Indian crude imports are from Africa We have reasons to be interdependent

5 India – Commercial Energy Out Look Africa can become a major supplier of Crude Oil and LNG to India Year 2012 Commercial energy demand 668 mtoe Oil Demand 235 mmtpa, 83% Natural Gas supplies likely to triple

6 India – Refinery Capacity Surplus India can become a major source high quality petroleum products to Africa

7 India - Strengths in Oil and Gas Sector Expertise in both on shore and off shore E&P, including deep water exploration Expertise in building and operating large, complex, modern, integrated and environment friendly refineries in record time Cost effective up-gradation and de bottlenecking old refineries Expertise in downstream retailing to reach petroleum products to one billion people over half a million villages, including LPG supplies to over 90 million customers Build cross country pipelines for NG and LPG Pool of human resources with latest skills in the Oil Sector Knowledge Partner – IT, SCM and Training in the Oil Sector Africa can safely count on Indian proven skills in the hydrocarbon sector

8 KG-D6 Development World’s largest and most complex deepwater gas development is happening in India

9 Complex refining configuration expertise India has operating experience of world’s largest units with high refining complexity

10 India will have the largest refinery complex in the world by Dec Jamnagar: Refining Hub of the World

11 Phased out lead in less than 6 years, fuels are lead free [2000] Benzene content in Gasoline reduced from 5% during 1996 to 3% and 1% (select cities) [2005] Cetane number in diesel from 42min [1980s] to 51min in 13 cities and 48min in rest of the India Africa can leverage fuel quality up-gradation experience of India in Refining and Marketing India’s quest for Fuel Quality

12 Areas of cooperation Short term areas and benefits Exploration Drilling e.g., mud pumps, chemicals, drill bits, pipes Bulk transportation (e.g., Pipelines, Valves, anodic - cathodic protection, control instruments and jetty cabling) Processing Refinery (Capital equipment for new projects, balancing equipment for expansion, EPC capacity building) Maintenance (Electrical, Mechanical, Instrumentation) Services Operation & maintenance, trained man power IT enabled services Inland transport vehicles Consumables Specialty Chemicals etc., Down stream Key raw materials for conversion industries – e.g., Petchem, Plastics etc., India can emerge as a major exporter of Products and Services

13 Areas of cooperation Medium term areas and benefits JVs and project export opportunities for Indian companies in –Upstream E&P activities –Mid stream contracts such as laying pipelines –Operation and maintenance of refineries –Consultancy services –Projects for setting up retail outlets in host countries –Turn key project implementation etc., African and Indian companies can forge win-win partnerships

14 Areas of cooperation Long term areas and benefits Equity participation in developed fields E&P contracts Midstream and downstream JVs and investments Energy Security for India in future Africa and India can build a model of “Reverse Dependence” in South – South cooperation

15 To further enhance business opportunities between India and Africa in the Hydrocarbon sector, MOPNG, UNCTAD & FICCI are jointly organizing India – Africa Hydrocarbon Conference & Exhibition in New Delhi, on 6-7, November, The participants will include Energy Ministers and Policy Makers from India and Africa Leading national and international Energy Companies Consultants Oil sector Service Providers Banking, insurance and Institutional investors Equipment manufacturers Legal experts Shipping, Pipeline and transportation companies Natural Gas producing companies Petrochemical companies

17 Welcome to New Delhi