India has invited Russia to explore its hydrocarbon reserves as Asia's third largest oil consumer seeks less dependence on oil and gas imports and looks to attract more investment in its energy sector. India is also interested in increasing its participation in the development of Russia's vast oil and gas reserves.

In 1999, India launched its New Exploration and Licensing Policy, offering better terms for contractors. India imports over two third of its crude oil needs and is keen to reduce its dependence on overseas purchases. On Monday, India's energy officials presented the ninth round of NELP in Moscow, urging Russia to take part in the exploration of 34 hydrocarbon blocks. Bids for the latest auction will close on March 18th 2011.

The previous round attracted over USD 1 billion in investments. One of the most active players in India among the Russian energy companies is Gazprom which said it had received an invitation to co operate in two upstream gas projects in India from the state run explorer Oil India Ltd.

Mr Alexander Nikiforov head of Gazprom's India office who spoke to reporters on the sidelines of the meeting between Indian and Russian energy officials said the company was evaluating the offer. He said that "They have invited us to be co-operator on two gas projects, one on-shore, one offshore.”

An Indian oil ministry official also told reporters that India's state run Oil and Natural Gas Corp was in talks with Russia's Bashneft to help the oil firm develop the Arctic Trebs and Titov oilfields, ONGC already has a stake in Russia's Sakhalin-1 oil and gas project in the Pacific, and in 2008 it acquired small-sized Imperial Energy oil company in Western Siberia.

Mr DN Narasimha Raju joint secretary of India's Petroleum and Natural Gas Ministry said that "ONGC Videsh Ltd. has expressed interest (in Trebs and Titov fields). Talks are going on.”

(Sourced from REUTERS)