"Market forces dictate that India and China will compete in acquiring hydrocarbon properties across the world. Both India and China should work together in this field as they are the worlds largest developing countries and can get the best prices," petroleum minister Mani Shankar Aiyar said at a conference on the China miracle organised by CII.
Mr Aiyar added that India was in a position to invest up to $25 billion for acquisition of overseas oil and gas fields.
Explaining the logic behind Indias eagerness to cooperate, Mr Aiyar said when the two compete against each other, the bid prices for the limited properties go up.
Giving examples of successful tie-ups between India and China, Mr Aiyar said that in Sudan, both the countries had been working together on the Greater Nile oil project in perfect harmony. Similarly, in Khartoum, China has built a refinery while India has built a pipeline to transport oil. "This model of cooperation can be replicated in Iran, Sub-Saharan Africa, Central Africa, Latin America and North and Central Asia," the minister said.
China Council for Promotion of International Trade assistant chairman Wang Jinzhen said in recent years, China-India relations had improved greatly and both had cooperated successfully on international issues.