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Indian team to visit China for oil talks
(AFP)
Updated: 2005-08-06 20:45

An Indian delegation will head to China next week to explore ways to cooperate in acquiring foreign energy assets to meet the soaring fuel needs of their fast-growing economies, a report said.

An Indian delegation will head to China next week to explore ways to cooperate in acquiring foreign energy assets to meet the soaring fuel needs of their fast-growing economies. [AFP]

The focus for cooperation by the world's two most populous countries would include Central Asia, Africa and Latin America.

The Indian diplomat, Talmiz Ahmad, said both India and China were concerned with achieving energy security, the newspaper quoted him as saying.

"We see in this similarity of approach possibilities of bilateral cooperation," Ahmad said."

Both countries have been rushing to acquire energy assets abroad and are often seen as rivals.

But energy analysts say it might make more sense for them to cooperate to gain economies of scale and negotiating muscle.

India's Petroleum Minister Mani Shankar Aiyar is due to visit China for five days in early November "to prepare the ground," Ahmad added.

Media reports have quoted Indian Oil Secretary S.C. Tripathi as saying New Delhi wants to drop its competition with China and join hands with Beijing for oil and gas acquisitions. The cooperation would include pooling of resources and joint bidding for fields, he said.

Beijing relies on foreign producers for one-third of its oil supplies and accounts for about seven percent of world oil demand. China used 5.46 million barrels of oil a day in 2003.

India imports nearly 70 percent of its oil needs and last year consumed a little over two million barrels a day. A government paper has forecast that by 2025, India will consume 7.4 million barrels a day.

The talk of energy cooperation comes against a backdrop of warming ties and leaping trade between the one-time Asian rivals who fought a brief but bitter border war in 1962.