The Federal Government of Nigeria has entered into a $15 billion deal with India, with the latter expected to make advance payment for crude oil purchases from the former.
According to the Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, the terms of the deal would be ironed out soon.
Under the deal, the Indian government would pay Nigeria in advance for crude exports, which would be paid back on the basis of the firm Term Crude Contracts, TCC, over the years.
Also included in the deal is the consideration for Indian public sector companies participating in the refining sector in addition to exploration and production activities on a government-to-government basis by the companies. Other terms include long-term contracts for the supply of crude to Indian companies from Nigeria as well as the execution of infrastructural projects by Indian companies in the country.
Between 2015 and 2016, India imported close to 23.7 million metric tonnes of crude and more than 2 million metric tonnes of Liquefied Natural Gas (LNG) per annum from Nigeria.
On completion of the negotiation, the two countries reached an agreement to work on a Memorandum of Understanding (MOU) to enable investments by the Asian country in the Nigerian oil and gas sector and particularly in areas such as term contract, participation in the refining sector, oil and gas marketing, upstream ventures, development of gas infrastructure and in the training of oil and gas personnel in Nigeria.
The MoU is expected to be signed in December 2016 according to reports.