India will invest $1 billion every year in acquiring oil and gas fields abroad in order to cut dependence on highly volatile international market for its crude oil requirement, petroleum secretary B K Chaturvedi has said. The 70% dependence on imports to meet domestic needs makes the country vulnerable to supply disruptions and adverse effects of extreme volatility, like the one being witnessed currently with oil prices soaring to $41 a barrel.
"We have already invested about $3 billion in taking stake in oil and gas fields in 9 countries. Further $1 billion per annum will be invested till 2015 with a view to meet 15% of the demand," he said at a CII seminar.
ONGC Videsh Ltd has already taken equity in an oil field in Sudan, which is giving 3 million tonnes of crude oil annually to India. Besides, a 20% stake in a Sakhalin field in Russia will give 5 million tonnes from 2005 and an equal quantity would be received in exchange of 50% in an Angola block, he said.