ESSAR Deal In BRICS Summit Reminiscents Oil Politics of the World

As the Russian consortium of Rosneft, Trafigura and United Capital Partners buy 98% of Essar Oil shares during the 2016 BRICS summit in India; it pulls our attention towards the “Buy and Capture’ oil politics happening on in the world. And we can’t ignore such a big deal when things are going that way.

In addition of the Rs 72800 crore cash deal, an additional Rs 13200 Crore will be paid by the consortium for Essar Oil’s port and other related infrastructure.

This is also the biggest foreign direct investment into India that was announced in the presence of Narendra Modi and Russian president Vladimir Putin in Goa.

This Indo-Russian ESSAR deal was the highlight of the BRICS summit. The Russian company Rosneft bought 49% of the shares of ESSAR which is a major player in India in the Oil business sector.

About 86,000 Crores of this deal has created a buzz in the international oil market. This deal will greatly impact the current balance of the oil market and the international politics since this world’s oil market and politics are two sides of the same coin.

The International Oil Politics which had been responsible for five wars and the blood of about a Million people is having a sensitive time.

The “Buy and Occupy” The Policy

Nobody has much idea about how the oil politics which has been the center point of power, market, dominion and war, will take turn in the future. This is not the war between the buyer and the seller. Saudi Arab, Russia, Canada, UAE, Iran are the biggest oil exporters, whereas the need of America, India, China, Japan, and Germany is times greater than their capability to produce.

USA has complete possession over the oil reserves of Iraq through which it fulfills its oil requirement.

All Eyes on Oil Reserves

USA, China, and Russia have the major oil reserves in their target. Either by means of straight war or by creating political disturbances in the country, the countries in power tend to occupy the oil reserves in the Arabian/Central Asian Countries.

At present, America has complete possession over all the major oil reserves of Iraq which USA had occupied after demolishing Saddam Hussain’s reign and conducting his execution in the year 2006, whereas the reserves of Libya, Kuwait and Nigeria are also being utilized by other countries.

Oil Wars – 5 Wars for Oil

The Gulf war and the Iraq are the recent examples. In Libya also, condition of civil war is created just for the sake of USA and the European Countries.

From 1967 to 1970 due to this oil politics, Biafra had separated from Libya and had become a separate country.

Sometime ago, Indonesia had also been a field of war because of Oil only.

USA wants to build a pipeline stretching from Gulf countries to USA, and it’s therefore its motive is to establishing its army bases at various places in the route.