The paper, India Energy Outlook, highlights the energy issues, problems and opportunities created by India’s rapid economic growth.

KPMG in India leader of energy and natural resource practice Partha Bardhan said India’s targeted GDP growth of 7-8% made it crucial for the country to secure energy supplies beyond its vast coal reserves.

“The Indian Government’s policy of allowing full private participation in upstream oil and gas exploration and production has already attracted a number of private investors, and recent gas discoveries hold promise for gas reserves in the future,” Bardhan said.

Many Indian petroleum companies were eager to identify and work with international counterparts, and the Indian Government was also developing strategies to encourage private investment and acquisition of equity oil abroad, he said.

“With energy demand in India outstripping production at home, India will seek partnerships with key nations, including Australia,” he said.

KPMG in Australia partner for energy and natural resources Brent Steedman said Australian oil and gas companies were starting to consider investment opportunities and alliances with India, either independently or through joint ventures.

“With our energy and natural resources expertise and geographical proximity, this is a clear opportunity for Australia to get on the front foot,” Steedman said.

Oilex and Arrow Energy – two companies led by men with significant experience in the Indian energy sector – have already formed exploration and production alliances with major Indian players.

The KPMG report also found there were also significant opportunities in infrastructure investment, as India’s infrastructure was already stretched.

“Investments in ports, railways, pipelines and power transmissions are urgently needed in India to attract energy sector investment,” Steedman said.

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