Indian state-run oil refiners have indicated interest to increase total crude oil consumption volume with additional 2m tons of crude oil import from Nigeria in 2017, informed Vangard.

A meeting between three Indian state-run oil refiners and Nigerian National Petroleum Corporation (NNPC) refineries’ Group Executive Director, Anibor O. Kragha, in New Delhi, started the ongoing negotiation in early December, Naija247 News reported.

The deal being negotiated by Nigeria will also have the Indian government make an upfront payment amounting to about $3.85b for the purchase of Nigeria’s crude on a long-term basis as well as Indian public sector companies investing in Nigerian refineries.

The Nigerian crude oil term contracts involve the export of around 1.17mb/d of Nigerian crude, out of the 2.2mb/d the country has the potential to produce. They are then sold by contract holders to end users, refiners and other buyers.

The two countries have been working on a memorandum of understanding in November to enable the participation of Indian companies in Nigeria’s upstream and downstream oil and gas sectors.