India Bid to Bolster Energy Ties with Mexico through Crude Oil Imports

Published Date : May 20, 2015

Indian Petroleum Minister Dharmendra Pradhan’s delegation to Mexico included an effort for improving cooperation in the energy sector and reinforcing bilateral ties with the Latin American nation. The attempt included setting up an office by ONGC Videsh Ltd (OVL) that is the overseas branch of the state-owned ONGC. 

During a meeting with Pedro Joaquin Caldwell the Mexican Energy Minister, the Petroleum Minister stated that more than 20% of India’s crude oil imports are from Latin American nations and Mexico is an important part of India’s bilateral ties for energy. Present at the meeting were Chief Executive of PEMEX Emilio Lozoya Austin, the national oil company of Mexico, and Ildefonso Guajardo Villareal the economy minister. 

Pradhan’s delegation includes ONGC Videsh Managing Director N K Verma, Indian Oil (IOC) Chairman B Ashok, Manish Mishra L&T’s Deputy General Manager, Atul Laul Reliance Industries’ President-Strategy,  and Mayank Ashar Cairn India CEO, among other delegates.

Last year, Mexico invited foreign and private participation in the energy sector for diversifying and improving bilateral cooperation. This move has provided a window of opportunity for an energy partnership according to Indian Petroleum Minister.  India asked Mexico to consider business deals with Indian infrastructure companies and with Indian Engineering, Procurement and Construction (EPC). India is looking for a long lasting partnership with Mexico in the hydrocarbon sector and can help Mexico to improve its refining sector. Pradhan stated that India had the expertise for developing complex refineries economically and is willing to join Mexico in production and exploration activities in deep water or other resources.

Mexico and Columbia are located strategically with access to crucial Atlantic and Pacific markets. India imports 78% of its crude oil and is attempting to diversify its bases for import of crude oil. As part of the five day visit to the two nations, Pradhan’s delegation is now on a visit to Columbia.