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Caucasus/Russia/Central Asia
India agrees to invest in Uzbek energy fields
2006-04-27
TASHKENT - Uzbekistan, its eyes set on Asia as its relations sour with the West, agreed on Wednesday to open up its oil and gas sector to India and invited one of the worldÂ’s biggest energy consumers to invest in new fields.

Speaking after talks with visiting Indian Prime Minister Manmohan Singh, Uzbek President Islam Karimov said his Central Asian state, increasingly criticised in the West over human rights, was ready for a closer energy dialogue with Delhi. “Uzbekistan’s vast oil and gas reserves are attractive to India which needs resources to ensure its energy security,” Karimov said, standing beside Singh in the capital Tashkent.

During the visit, Uzbekistan and India signed three framework agreements specifying IndiaÂ’s role in UzbekistanÂ’s energy and minerals sector. Karimov said he was ready to offer India new exploration sites under a production-sharing agreement, but gave no details.

Apart from India, Uzbekistan has also invited resource-poor South Korea to develop energy and mining projects. It has also strengthened ties with Moscow, which has defended Karimov on Andizhan, and signed deals with RussiaÂ’s Gazprom to jointly tap gas fields worth $1.5 billion.

“We are also very happy that we have agreed to cooperate in the fields of oil and natural gas exploration and production,” India’s Singh told reporters. “We see Uzbekistan as an important element in any effort to optimally utilise the energy resources of Central Asia.”
Posted by:Steve White

#4  The oil can also go west or north.
Once it is in the oil pipeline grid, it can be traded for other nearby sources.



Posted by: john   2006-04-27 19:57  

#3  So long as China chooses to honour the contract, of course.
Posted by: trailing wife   2006-04-27 19:37  

#2  Trading.

Any production is sold to China. India gets crude from a Chinese owned field from say, Sudan.

This is arrangement with Sakhalin field in Siberia which India funded some of the development. Oil goes to China or Japan and is traded for closer sources (the Persian gulf).

Posted by: john   2006-04-27 15:50  

#1  Ah yes, but how are you going to get the oil/gas from Uzbekistan to India? Any pipeline has to cross the territory of either Pakistan or China.
Posted by: phil_b   2006-04-27 08:04  

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