2024-11-01 18:02:24 :
NEW DELHI: Diplomatic tensions between India and Canada may not affect the oil marketing and refining operations of Indian Oil Corporation (IOC)’s Canadian unit IndOil Montney Ltd and dividends will continue to flow in, two people familiar with the matter said. developments.
Indian Oil, through its wholly-owned subsidiary Canada’s IndOil Montney Ltd, purchased a 10% stake in shale gas assets in Canada’s British Columbia and the country’s west coast from Petronas in a $1.1 billion deal in 2014.
“This will not have any impact on operations. The dividends come from the shares held by IndOil Montney. This will continue. We do not see any obstacles there,” one of the two said.
The statement came as diplomatic ties between the two countries hit a new low, with each expelling each other’s diplomats and India recalling its high commissioner from Canada last month. The operations come after Canadian police revealed alleged links between Indian government “agents” and the killing of Hardeep Singh Nijjar, an alleged Khalistani leader and Canadian citizen. Triggered by details. Nijjar was a Khalistani separatist who was shot dead in Canada in June 2023. He is a Canadian citizen but is designated a terrorist in India.
dispute between india and canada
Relations between the two countries have deteriorated over the past year, with India accusing Canada of resorting to “vote bank politics.”
Another person familiar with the matter also said that despite the diplomatic dispute, commercial relations between the two countries were unlikely to be affected.
In 2014, IndOil Montney signed a transaction agreement with Progress Energy Canada Ltd (Progress Energy Canada), PETRONAS Carigali Canada BV (PCC BV) and a wholly-owned subsidiary of PETRONAS to acquire a 10% interest in Progress Energy Canada British Natural gas reserves from northeastern Columbia and the proposed Pacific Northwest Liquefied Natural Gas Ltd. (PNW LNG) export facility in western Canada.
LNG supply
The initial plan was that Indian Oil would also purchase 1.2 million tonnes of liquefied natural gas (LNG) per year for at least 20 years as part of the deal, accounting for 10% of the LNG facility’s output.
IndianOil’s annual report for FY24 said: “The company has entered into a master guarantee agreement on behalf of its subsidiaries Indoil Global BV and Indoil Montney Ltd. for the performance of all payments under various project agreements entered into by its subsidiaries with Indoil Global BV and performance obligations. PETRONAS Carigali Canada BV and Progress Energy Canada Ltd. (now Petronas Energy Canada Ltd.).”
It noted that the board approved a total of C$3,924.76 million.
The second person said that while efforts have been made to procure LNG from Canada, supplies have so far not materialized due to a lack of adequate infrastructure such as ships or pipelines.
Wednesday, Mint Reports say that despite the diplomatic standoff, bilateral trade between India and Canada has climbed steadily over the past few years and has remained largely stable this fiscal year. The trade volume between the two countries increased from US$5.65 billion in FY21 to US$8.4 billion in FY24.
Inquiries sent to the Ministry of Petroleum and Gas of the Russian Federation and the International Olympic Committee remained unanswered at press time.
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