India woos fuel-rich African states

NEW DELHI: Energy-starved India stepped up efforts to woo fuel-rich African states on Tuesday hosting the first India-Africa hydrocarbon conference as oil prices surged towards the $100 mark.

Oil Minister Murli Deora urged African countries such as Nigeria, Sudan and Egypt to "use the opportunity ... to develop strong business ties ... for mutual benefit."

Rising oil prices, Deora told the opening day of the two-day meet, were "a matter of grave concern to all developing countries due to the imminent danger of economic dislocation and its cascading effect on both oil producing and consuming countries.

"As legitimate energy demands of developing countries grow in order to fuel their economic growth, the spare capacity across the global supply chain has been diminishing feeding speculative interests in the oil market," he said.

Against this backdrop, "the spectacular oil reserves of Africa are gratifying," Deora said, seeking greater cooperation between India and energy-rich African nations.

India, which currently imports more than 70 per cent of its energy needs, is seeking new supplies of oil and gas from abroad as well as ramping up production from domestic sources to fuel runaway economic growth.

New York's light sweet crude for delivery in December climbed $1.19 dollars to 95.17 a barrel from its close of $93.98 in US trades on Monday. It hit a record high of $96.24 last Thursday.

Oil ministers from eight countries and delegations from some 18 others are taking part in the conference that concludes Wednesday.