India has expressed its desire to be part of an expanded programme of the Nigerian government to develop its energy sector and will invest atleast $360 million in developing two oil blocks in this West African nation. This investment would be separate from those it is prepared to make in the oil refining sector.

 ''India will invest $350 million in developing two oil blocks in the West African nation, besides increasing its engagement in the gas sector as well,'' petroleum and natural gas minister, Murli Deora, said after meeting his Nigerian counterpart Henry Odein Ajumogobia at Abuja on Monday.

''India is looking forward to partnering Nigerian National Petroleum Corporation (NNPC) through the Indian oil and gas conglomerate - ONGC Mittal Energy Ltd. - for the establishment of a greenfield petroleum refining plant,'' Deora said.

The two oil blocks in question are Nigerian Oil Prospecting Licences (OPLs) 279 and 285. Drilling operations have begun in one of these oil prospects.

According to Deora, India buys at least 400,000 barrels of oil per day from Nigeria, the annual value of which he estimated to be at $10 billion.

Deora said India was ready to partner with the NNPC in the establishment of a greenfield refinery with the aim of boosting the domestic production of petroleum products in the country.

''We will be importing about 40 million barrels, most of which are on spot basis from Nigeria. We have a refinery of about 180 million tons and about 25 per cent of Indian import is from Nigeria alone. At the current value, it will be worth $10 billion from Nigeria alone".

"We will like to have more Nigerian crude on terms contract basis. Some Indian companies are already playing in Nigeria's upstream sector. We will like to consider opportunities in Nigeria's upstream sector. India has the capacity to work with Nigeria in the midstream and downstream sectors," he said. 

Talking about the ongoing reforms in Nigeria's oil industry, Deora said India was keen to learn about the nation's strategies and see how it could partner in the proposed transformation.

RS Sarma, managing director of the state-owned Indian oil and gas giant, The Oil and Natural Gas Corporation Ltd (ONGC), said his company has been working with the NNPC in the formulation and implementation of the gas master plan.

He also said his firm has proposed to partner with NNPC in the development of a greenfield refinery that could help bring some relief to the crisis of petroleum product supply in the country's downstream sector.

"We have several companies from India that have come here. In the last several years, we have been talking with NNPC about a new greenfield refinery in Port Harcourt. Feasibility studies have been completed," he said.

The Gas Authority of India Ltd, (GAIL) was interested in setting up petrochemical plants, LPG plants and LPG transportation pipelines. Along with its consortium members, GAIL has been shortlisted as one of the 15 companies qualified to participate in Nigeria's ambitious $30 billion National Gas Master Development Plan.

Similarly, Indian Oil Corporation has offered to assist in refinery up-gradation, improving refinery operations by imparting training to technical personnel and providing consultancy, besides setting up LNG liquefaction plants.

The minister of state for petroleum resources, Odein Ajumogobia, who stood in for the minister of petroleum resources, Dr. Rilwanu Lukman, at the meeting, said Nigeria is eager to partner with any country that shares a common vision with it on the need to transform the oil and gas industry in such a way that it serve the greater need of the people.

"Nigeria hopes to   further strengthen existing bilateral relations, especially with countries that such as India that buys our crude oil.  However, we believe we can achieve more through greater cooperation in terms of technical assistance in the exploration of hydrocarbon.

"The country is determined to transform its oil and gas sectors to a path of sustainable growth and is therefore ready to partner with any country or organisation that share a common aspiration in that regard," he said.