Potential collaboration stems from high-level talks between India’s Oil Minister Hardeep Singh Puri and Petrobras CEO Magda Chambriard, as India aims to boost energy self-sufficiency while balancing its transition to green energy

10/16/2024

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India is trying to attract Petrobras to explore oil in the deep waters off its coast. This was the key topic during a visit to Brazil in September by India’s minister of Petroleum, Hardeep Singh Puri, who held a meeting with Petrobras CEO Magda Chambriard, among other commitments.

In an interview with Valor, Mr. Puri said Indian companies want to leverage the expertise Petrobras has gained from pre-salt exploration, adding that future partnerships with the Brazilian state-owned oil giant in exploratory projects are possible. He described this “initial conversation” with Ms. Chambriard as “very positive.”

“I met with the Petrobras CEO, and we had a long and comprehensive discussion about the ongoing cooperation between India and Brazil in the energy sector, and we also discussed ways to strengthen this cooperation,” he said. “We talked about expanding traditional business, increasing collaboration in biofuels, and Petrobras providing assistance since it has unique expertise in what is called deepwater exploration.”

Petrobras confirmed that Ms. Chambriard and Mr. Puri had discussions but said no decisions have been made so far.

Mr. Puri said India has a sedimentary basin of about 3.5 million square kilometers, and recently, the country opened up 1 million square kilometers for exploration in areas that were previously off-limits.

“We are now inviting companies to participate,” he said. “Our firms would like to invite Petrobras to assist with technical knowledge, and if successful, they could potentially form partnerships.”

Energy demand in India, he said, is growing at a rate three times higher than the global average, with imports currently accounting for 85% of domestic consumption. Brazil is the 12th largest oil supplier to the Asian country. The Indian government, led by Prime Minister Narendra Modi, aims to achieve energy self-sufficiency in the medium to long term.

“We need to expand traditional energy, but our main goal is to ensure availability, affordability, and sustainability—green energy,” Mr. Puri explained. “The economy is growing at 7%, and the increase in consumption demand is three times the global average. Moreover, the International Energy Agency has predicted that over the next two decades, 25% of demand growth will come from India.”

Mr. Puri stressed that energy transition is a key commitment for India, but despite climate change challenges, the country will need to continue expanding fossil fuel production for some time.

“Like Brazil, India is transitioning to green energy. But you need to survive,” he said.

With a population of 1.4 billion, India has set a target of achieving net-zero CO2 emissions by 2070. The country has already started implementing measures to promote renewable energy, including increasing ethanol blending in gasoline and launching green hydrogen projects. India also plans to double its solar and wind energy capacity over the next decade and aims to reduce coal use until 50% of its energy consumption comes from renewable sources.

However, India still has large coal reserves, and with such a vast population, it is challenging to phase out polluting sources that remain cheaper.

Mr. Puri was pragmatic, noting that an energy shortage caused by a ban on fossil fuels could have electoral consequences for Prime Minister Modi, as well as broader implications for the country’s democracy.

“If you have a population of 1.4 billion, you have 960 million registered voters. In the last election, when Mr. Modi won his third consecutive term, 680 million people voted. Now imagine 680 million people going to the polls. Imagine if there were an energy shortage, or if energy prices rose, what the political and democratic consequences would be,” he said. “In academic discussions, everyone will agree that we need to transition tomorrow. But you must have the transition fuel ready. You can’t go to your population and say, ‘Starting tomorrow, we’re moving to green energy.’ They will ask, ‘Very well. How much does green energy cost? Where is it?’”

*By Fabio Murakawa, Rafael Bitencourt — Brasília

Source: Valor International

https://valorinternational.globo.com/