NEW DELHI, 17 January 2005 — Prime Minister Manmohan Singh yesterday called on Indian oil firms to think big and go global. Inaugurating Petrotech-2005 here, Manmohan drew attention to China being ahead of India in planning for future in energy security and said it was time Indian oil companies ceased being complacent.

The prime minister said the government was exploring possibilities of restructuring oil public sector units (PSUs) to make them globally competitive. He said: “We can no longer be complacent and must learn to think strategically, to think ahead and to act swiftly and decisively.”

Suggesting that in the coming days competition between India and China for oil and gas fields may intensify, Manmohan said: “We need to strengthen our oil companies in launching them as global firms.”

“China is ahead of us in planning for its energy security — India can no longer be complacent,” he said.

Drawing attention to India not being blessed with the luxury of abundant fossil fuel resource, the premier said: “Clearly the challenge before us as a nation is to meet energy needs of all segments of the population in an efficient and affordable manner ensuring long-term sustainability and environmental protection.”

That the diplomatic signals being sent by India are being well received in the international arena is suggested by the response of Saudi Arabia.

While considering options of increasing oil exports to India, Saudi Arabia is also interested in forging joint ventures with Indian oil companies. “We are looking at a significant increase in oil exports to India, from 450,000 barrels per day (bpd),” said Abdallah S. Jum’ah, president and CEO of Saudi Aramco, on the sidelines of Petrotech 2005.

Regarding joint ventures, he said: “We will be talking to Indian Oil Corp during the course of this visit to forge a joint venture to set up a refinery in Saudi Arabia with a capacity of 400,000 bpd. We are also interested in Indian refining and marketing sector and are speaking to a lot of friends here.”

While Aramco is “looking at a strategic stake in Hindustan Petroleum Corp Ltd (HPCL),” its plans of picking up stake in HPCL’s nine million tons grassroots refinery have not worked out.

Given that India is planning to restructure its PSUs, joint ventures may take some time to pick up.

Indian Petroleum and Natural Gas Minister Mani Shankar Aiyar said that the advisory panel formed to suggest restructuring of public sector oil firms will hold its first meeting on Jan. 24.

Aiyar said: “The six-member Advisory Committee on Synergy will be headed by national advisory council member V. Krishnamurthy. It would look at options of merging two or more companies to create oil behemoths that have the financial capabilities to match Chinese firms in the international arena.”

India is also considering the option of keeping the oil PSUs as they are with a “management structure that coordinates PSU efforts,” Aiyar said.

Merging all oil PSUs will create a big company, which will get the 34th position on the Fortune 500 list of global majors, he said.

Petrotech-2005, the largest conclave of petroleum industry in the subcontinent, brings together all those who matter in the oil and gas business — industrialists, bureaucrats, academics and media.

The bi-annual event is expected to provide a perfect opportunity for interaction, sharing knowledge and promote global cooperation for securing sustainable energy supplies.

The event’s theme is “Value from Hydrocarbons — Advances in Science and Technology.”

Organized by ONGC, under the aegis of the Ministry of Petroleum and Natural Gas, some 2,500 delegates are participating in the meeting. The event will see 432 research papers being presented by Indian experts and 119 by overseas experts.

The participants will showcase emerging trends in petroleum technology, state-of-the-art equipment, services and technology.