India earmarked two multibillion dollar energy deals with Iran and Russia yesterday, underlining its rivalry with China in the race to secure oil and gas supplies to fuel rapid economic growth.
In New Delhi, India and Iran signed a preliminary agreement - unofficially estimated to be worth $40 billion (€30.6 billion) - that committed India to importing liquefied natural gas and developing two Iranian oilfields and a gas field.
Mr Mani Shankar Aiyar, the Indian oil minister, said: "Every last detail has been settled, price too."
Separately, India's Oil and Natural Gas Corporation said it was in talks about investing in part of Yukos, the Russian oil group broken up in a state-backed auction last year.
Officials from New Delhi's petroleum ministry told India's Business Standard newspaper that ONGC may soon place a $2 billion bid for a stake in Yuganskneftegaz, the main production unit of Yukos.
Mr Subir Raha, ONGC's chairman and managing director, said that the company was "in touch with the concerned Russian entities about the Yukos assets and other opportunities in Russia".
A spokesman for Mr Raha warned that the deal was in its early stages and the company was "discouraged" by the liabilities of Yukos, which is being pursued by the Russian authorities for billions of dollars in unpaid taxes.
India's rapidly growing economy is hungry for energy and demand for oil is set to grow at an annual rate of at least 3.6 per cent during 2005-07. India imports about 70 per cent of its crude oil.
A bid by ONGC for a Yuganskneftegaz stake could put it in competition with the Chinese National Petroleum Corporation, which Russian officials had earlier indicated was their preferred foreign partner for the assets.
According to the Iranian deal, India will import 7.5 million tonnes of liquefied natural gas - starting in 2009 and lasting for 25 years. - (Financial Times Service)
