India took another step towards economic
and strategic penetration in Central Asia with the visit to New Delhi last week
of Uzbekistan's President Islom Karimov, who signed an agreement that could
lead to India's ONGC Videsh Ltd (OVL) prospecting for oil and gas inside its
neighbor's territory in cooperation with Uzbekneftegaz.
In meetings with Indian Prime Minister
Manmohan Singh, both sides agreed to raise the level of bilateral relations to
a ''long-term strategic partnership''. The heads of state signed 34 accords
across a wide range of issues that, alongside the hydrocarbon sector, included
cooperation in pharmaceuticals and information technology.
Under their provisional agreement, OVL,
the overseas arm of India's state-owned Oil and Natural Gas Corporation, will
form working groups with Uzbekneftegaz in a view towards joint activities in
third countries, allowing OVL to continue to increase access to Central Asia's
vast energy resources.
The Karakalpakistan region of Uzbekistan
holds up to 70 billion cubic meters of unexplored natural gas by some
estimates. In return for the possibility of Indian assistance there, Uzbekistan
is holding out the offer of shale gas technology to India for prospecting in
such regions as Assam, Gujarat, and Rajasthan.
Bilateral energy
cooperation between India and Uzbekistan extends to Afghanistan where,
according to Indian newspaper The Hindu, the two countries have cooperated to
supply electricity to Kabul, with Uzbekistan furnishing the power for the
transmission network built by India. (further text omitted).