Nigeria’s over $13bn annual crude oil exports to India may be under threat as the South Asian country plans to tap its $40 billion worth of oil and gas reserve by attracting $25 billion investments into the sector in a policy aimed at reducing dependence on imported energy.

 India’s new policy may mean further drop for Nigerian crude imports 0
India’s new policy may mean further drop for Nigerian crude imports

According to FT, India expects to attract $25 billion in investments within the next few years for exploration and production of hydrocarbons in the country, following the implementation of  reforms known as “HELP”. Under HELP, companies will now enter into a revenue-sharing agreement with the government as opposed to the profit-sharing mechanism now in place. Firms will be able to bid for E&P rights for all hydrocarbons in blocks of their choosing.

Minister of State for Petroleum and Natural Gas Dharmendra Pradhan also said recently the new hydrocarbon exploration and licensing policy (HELP) and a more liberal gas pricing structure that would help India reduce reliance on oil imports over the next 10-15 years. The country currently imports 75% of its oil, out of which Nigeria has had a sizable share of India’s crude imports.