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US seeks India's co-operation in energy security

The United States has sought India's co-operation in protecting oil and gas supplies from the volatile Middle East region, the main supplier of crude oil for both the countries.

"The Persian Gulf, and the lines of communication connecting that region with the rest of the world remain critical for the security of both countries," US Ambassador Robert D Blackwill told a business conference on Thursday.

He said the United States and its allies depended on the Middle East for half of their crude oil imports, while India banked on the region for 90 per cent of such imports.

"Consequently, the flow of oil and gas from the Middle East must be safeguarded and free of threats stemming either from military aggression or from acts of terrorism," he said.

"Parallel with efforts by the international community, the United States and India can work more closely together to achieve this objective."

He said both countries wanted a higher global supply of energy as the current production levels were inadequate.

"This implies that there will be increasing joint opportunities to exploit new technologies to increase energy supplies."

Blackwill said American energy firms were world leaders and their investments in the US and abroad enhanced efficiencies.

"Despite current difficulties, we hope those US firms can thrive in India."

US energy firm, Enron Corp, is embroiled in a bitter payments dispute with a local utility and has declared it wants to sell its 65-per cent stake in the $2.9-billion Dabhol power plant--the largest direct foreign investment in India.

Another American energy firm, AES Corp is also facing a payments dispute and said recently it wanted to sell its stake in a distribution company in the eastern state of Orissa.

Blackwill said problems faced by multinational investors had 'darkened' India's investment climate.

"I know this personally from speaking with some of the premier American business executives with major investments in Asia."

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