ONGC Videsh to double Africa investments to $16 bn in 3 years

ONGC Videsh Ltd (OVL), the overseas investment arm of state-run explorer Oil and Natural Gas Corporation (ONGC) is planning to double its investments in Africa from the current $8 billion over the next three years.

"ONGC Videsh has invested around $8 billion in Africa so far. We aim to double this investment over the next 3-4 years. We are willing to invest in both upstream and downstream projects but there is a need to resolve the prevalent challenges in the system to spur investment growth," OVL Managing Director N K Verma said in his address at the India Africa Business Forum here.

ONGC Videsh is currently looking for oil and gas opportunities in Angola, Algeria and Equatorial Guinea. The company holds interests in oil and gas assets in Mozambique, Libya, Sudan and South Sudan. "We need adequate compensation to invest in Africa due to the low oil prices and geographical risks," Verma said.

He also said Africa with its abundance of renewable resources was an ideal partner for India which has the technology, skill and financial capability to harness energy. India-Africa ties have been robust for a long time and this partnership is for progress, Verma said.

Inoge Wina, Vice-President of Zambia, who was also present on the occasion said Africa would benefit immensely from Indian energy companies setting up operations in the continent. She also assured providing an environment enabling Indian companies to thrive.

Namibia's Minister of Mines and Energy Obeth Kandjoze said on the Forum the focus of that nation is on developing domestic power generation plants and his country offers a conducive environment for foreign investors with its liberal policies, repatriation of capital, access to foreign exchange, provision of arbitration, fair compensation in case of legal disputes and equal treatment to foreign and local players.