From energy to education, Chavez is high on India
Venezuela’s self-confessed Indophile Chavez commits 1 m barrels of oil per day.
By Rajeev Jayaswal, TNN |
President Hugo Rafael Ch��vez Fr��as is used to being controversial. The tenure of this Leftist soldier-turned-democratically-elected politician at the helm of Venezuela has been stormy and his relationship with the US has been tumultuous. But India has an entirely different place in the heart of South America���s most outspoken and colourful leader. The recently signed joint venture with Venezuelan national oil company for an oil block in the San Cristobal oilfield could be the beginning of a multi-faceted relationship between Venezuela (said to have the world���s largest oil reserves) and India.
After a meeting with petroleum minister Murli Deora on Wednesday in Caracas, Chavez announced his willingness to give two more oil blocks to India. He also ET that he loves India because he too ���is an Indian,��� and painted a near-futurescape in which Venezuela would supply one million bpd of oil to energy-starved India ��� the same goal that it has for China. But on the question of the current Tibetan unrest, which Chavez contends is engineered by the US, China has the president���s unflinching support. Excerpts:
Sir, Venezuela is diversifying its oil market which concentrated only on the US in the past. Where does India stand in your current scheme of things?
We have started diversifying our oil market. In the past, the US was our sole market. Today, we export oil to the Caribbean, Africa, Europe and Asia. We export 300,000 barrel per day (bpd) of oil to China currently and the goal is to touch one million bpd. We are happy with the first step we have taken on India. The oil JV is an important step. The minister���s visit is a positive signal.
He has brought with him a letter from the India���s Prime Minister Manmohan Singh and I take this opportunity to send my greetings to the people of India. Mr Deora has also requested for two more areas in Orinoco belt. What we are doing is extremely important. We are increasing joint production. We are taking our oil to India. We also participate in refining and distribution in India.
You mentioned that the Indian oil minister has asked for two more blocks. Are you willing to give those blocks?
How do you assure investors (like ONGC) that the signed contracts will be honoured, especially with Venezuela���s recent nationalisation move?
We recently nationalised cement as we needed the commodity to build houses. Even though cement belonged to us, multi-national cement manufacturers were selling it at high rates. The nationalisation programme was aimed at solving the old problems that we had inherited. All these businesses were bad for Venezuela.
Now, we are doing businesses that are good for the country. India can rest assured that all agreements we have signed with them will be honoured. We are making this commitment today because business with India will not engender monopoly.
Your government has been working with multi-national oil giants. What has been your experience with them and do you prefer state-owned oil companies over MNCs?
We are doing business to benefit our people. In a few years from now, our oil will reach India and contribute to the economic growth of the country and its people. India���s economic growth is biggest in the world ��� 8% to 9%. With a population of one billion, the demand for energy will be high.
So we are happy to contribute modestly to the growth of the Indian economy. By doing that we are contributing towards creating a multi-polar world. Regarding MNCs. We know them very well. We have been dealing with them for 100 years. So we know how to deal with them.
Apart from oil, what are the other areas of trade that both India and Venezuela can look forward to?
We have already discussed about the potential areas of co-operation with India. India can make a valuable contribution to the fight against poverty. Other areas of co-operation could be in education, science and technology, pharma, medical equipments, production, food processing and housing sectors. This visit is extremely important in this direction. A high-level joint working committee will soon meet in this regard.
There is opposition against China over Tibet. What is your view?
We are with China. We have already said that behind all this (conflict), there is a hand of the US. They want to derail the Olympic games. We ask the world to support the Olympics and to support China. The same way we support India, Africa, Latin America. That is the new world, a free and multi-polar world.
After a meeting with petroleum minister Murli Deora on Wednesday in Caracas, Chavez announced his willingness to give two more oil blocks to India. He also ET that he loves India because he too ���is an Indian,��� and painted a near-futurescape in which Venezuela would supply one million bpd of oil to energy-starved India ��� the same goal that it has for China. But on the question of the current Tibetan unrest, which Chavez contends is engineered by the US, China has the president���s unflinching support. Excerpts:
Sir, Venezuela is diversifying its oil market which concentrated only on the US in the past. Where does India stand in your current scheme of things?
We have started diversifying our oil market. In the past, the US was our sole market. Today, we export oil to the Caribbean, Africa, Europe and Asia. We export 300,000 barrel per day (bpd) of oil to China currently and the goal is to touch one million bpd. We are happy with the first step we have taken on India. The oil JV is an important step. The minister���s visit is a positive signal.
He has brought with him a letter from the India���s Prime Minister Manmohan Singh and I take this opportunity to send my greetings to the people of India. Mr Deora has also requested for two more areas in Orinoco belt. What we are doing is extremely important. We are increasing joint production. We are taking our oil to India. We also participate in refining and distribution in India.
You mentioned that the Indian oil minister has asked for two more blocks. Are you willing to give those blocks?
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The political answer is yes. We produce 3.2 billion bpd currently and soon we will reach 5-6 million bpd. Very soon we might even be able to send one million bpd oil to India. How do you assure investors (like ONGC) that the signed contracts will be honoured, especially with Venezuela���s recent nationalisation move?
We recently nationalised cement as we needed the commodity to build houses. Even though cement belonged to us, multi-national cement manufacturers were selling it at high rates. The nationalisation programme was aimed at solving the old problems that we had inherited. All these businesses were bad for Venezuela.
Now, we are doing businesses that are good for the country. India can rest assured that all agreements we have signed with them will be honoured. We are making this commitment today because business with India will not engender monopoly.
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We have the largest oil reserves in the world and we are determined to diversify our market. The policy decisions (export of oil and nationalisation of certain industries) are not related to each other. These are two different things. Nationalisation is to recover strategic areas.Your government has been working with multi-national oil giants. What has been your experience with them and do you prefer state-owned oil companies over MNCs?
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We always give preference to government-to-government (deals). Because the government represents the people. We represent our people, and the government of India represents the great people of India. We are not doing business to make money, or to benefit a small minority or to make rich people richer. We are doing business to benefit our people. In a few years from now, our oil will reach India and contribute to the economic growth of the country and its people. India���s economic growth is biggest in the world ��� 8% to 9%. With a population of one billion, the demand for energy will be high.
So we are happy to contribute modestly to the growth of the Indian economy. By doing that we are contributing towards creating a multi-polar world. Regarding MNCs. We know them very well. We have been dealing with them for 100 years. So we know how to deal with them.
Apart from oil, what are the other areas of trade that both India and Venezuela can look forward to?
We have already discussed about the potential areas of co-operation with India. India can make a valuable contribution to the fight against poverty. Other areas of co-operation could be in education, science and technology, pharma, medical equipments, production, food processing and housing sectors. This visit is extremely important in this direction. A high-level joint working committee will soon meet in this regard.
There is opposition against China over Tibet. What is your view?
We are with China. We have already said that behind all this (conflict), there is a hand of the US. They want to derail the Olympic games. We ask the world to support the Olympics and to support China. The same way we support India, Africa, Latin America. That is the new world, a free and multi-polar world.
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