Talks on India’s investment decisions in the U.S. upstream oil and gas sector
- US and India are in discussion to enable investments in Oil and Gas sector & will discuss about finalizing on India’s investment decisions in the US Oil and Gas Sector.
- This pertains to Indian oil investments and operations in countries such as Sudan that were sanctioned by the U.S.
- An off-take agreement has been signed by Indian companies with US company for the supply of 3.5 million metric tonnes of LNG per annum.
- Free Trade Agreement (FTA) authorization is required for countries interested in purchasing U.S. oil and gas but do not have a bilateral FTA. This is the first LNG Project in the U.S. with non-Free Trade Agreement (FTA) authorization.
- An Indian company has taken a 20% participatory interest in a shale gas asset as well.
- After 2005 Indo-US energy talks had taken a back seat because of two major developments
- Discovery of huge shale gas reserves in the US
- US desired to persuade countries like India who were major buyers of Iranian crude, to curtail their purchases.
- Shale Gas
- India USA Bilateral Relations
- Free Trade Agreement (FTA)