James Baker quietly
lobbies India
uploaded 15 Apr 2002
Secret
visit to gain support for Iraq attack, partner for oil
NEW DELHI The visit was shrouded in secrecy. Only a few
dozen people in India knew that James Baker former U.S. secretary
of state, Texan oil man and close confidant and key strategist for
Presidents George Bush and George W. Bush arrived in Delhi a
fortnight ago.
The visit set the Indian rumor mill buzzing
as oil industry players speculated about its purpose.
Western diplomatic sources confirmed that during the
closely-guarded visit, Baker who cobbled together the global
alliance against Saddam Hussein in the 1991 Gulf War met senior
officials of the prime minister's office and the external affairs
and petroleum ministries.
The agenda, the sources say, was
three-pronged:
Lobby New Delhi for support of
Washington's planned attack on Iraq.
Persuade India's
private sector Reliance Petroleum and state-owned Oil and Natural
Gas Corporation to drop their exploration and production plans in
Iraq.
Persuade ONGC to partner with a U.S. energy company to
explore two sites in Nepal.
Baker was on a private visit and
stayed with U.S. Ambassador Robert Blackwill at Roosevelt House,
Gordon K. Duguid, information officer at the U.S. Embassy, said in
an interview.
Though Indian foreign office officials remain
tight-lipped on the visit, diplomatic sources said Baker sought
India's support for the planned attack on Iraq. While the U.S.
considers Iraq a terrorist state, India has traditionally maintained
good business and trade ties with Baghdad.
Besides buying
oil from Iraq, India also has been the largest exporter of
electrical equipment to the Arab nation. Of the $750 million that
Iraq spent on its electrical needs in the last three years, India
bagged almost half. This could quadruple in the near future.
Iraq's minister for commission of electricity, Sahbaan
Mahjoob, visited India after Sept. 11 and indicated that Indian
exports could be raised to $700 million in the next two years.
India's increased business with Iraq is an area of discomfort, a
senior Western diplomatic source said.
It was not
immediately known whether Baker met Indian premier Atal Behari
Vajpayee before the prime minister left for his visit of Singapore
and Cambodia. Along with the diplomatic maneuvering with the prime
minister's office and foreign office officials, Baker made a
presentation to petroleum minister Ram Naik and heads of state-owned
oil and gas companies. He also extended a personal invitation to
Naik to visit and address the James Baker Institute of Public Policy
in Texas.
The aim was to dissuade Indian companies from
investing in Iraq, a top Western diplomatic source said. He added:
Investments of $600 million have been planned by ONGC and Reliance
for Iraq.
The two companies have signed an agreement with
Algerias Sonatarch to secure an oilfield in Iraq for production of
crude. ONGC Videsh Limited, a subsidiary of ONGC, has sought to form
a venture with two other partners to produce crude from the Tuba
oilfield. ONGC is awaiting approval from its board to invest
approximately $63 million in Iraq.
Both ONGC and Reliance
refused to comment on Baker's visit.
Baker also exhorted
Indian companies to join hands with American oil companies for
explorations in Nepal, said a senior petroleum ministry official.
ONGC is well-placed to buy a 50 percent stake in two
exploration blocks in Nepal, owned by the Houston-based Texana
Resources. Indian petroleum ministry sources agree that the
state-owned company's investment in the two blocks were of strategic
importance to India as they were located near the Indo-Nepal border.
Block three in Nepalgunj and block five in the Chitwan region were
awarded to Texana by Nepal under a production sharing agreement.
Texana will conduct detailed exploration, including seismic
work to further define drilling locations, said Texana president Max
Mazy.
"We have high hopes and strong indications that the
potential exists for world-class hydrocarbon resources in Nepal,"
Mazy said.
Baker's interest is understandable. First, a
joint venture would help U.S. companies figure out the difficult
terrain. Secondly, it would help major U.S. oil firms stave off
rival interests. Two Chinese companies China National Star
Petroleum and National Oil and Gas had also expressed interest,
along with Pakistan's Oil and Gas Development.
Source: WorldNetDaily
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