The Hindu Business Line : More crude import deals with Saudi Arabia soon: Aiyar

INDIA hopes to explore the possibilities of bilateral investments in hydrocarbon sector and long-term crude import deals with Saudi Arabia, the Petroleum and Natural Gas Minister, Mr Mani Shankar Aiyar, said on the eve of his four-day visit to Riyadh.

"Saudi Arabia is our single-most important source for crude oil. We are looking at importing greater oil volumes from that country on a much longer term on a mutually acceptable basis," the Minister said.

Addressing a press conference here on Monday, Mr Aiyar said India's crude imports from Saudi Arabia were through annual term contracts. In the current fiscal ending March 31, the country's crude imports from Saudi Arabia are expected to be about 26 per cent of the overall oil imports.

Outlining the opportunities which India would be looking at, Mr Aiyar said, "We would consider various prospects for investing in Saudi Arabia's oil refining and natural gas exploration sectors." The Minister also stated that he would take further a Saudi Aramco proposal to Indian Oil Corporation to build commercial crude oil storage facilities in India.

Also India would follow up on the recent meeting of Asian oil buyers held in New Delhi in January this year. The meeting had raised concerns about crude supplies as well as higher prices charged from Asian buyers.

Talks with Pakistan: India will resume talks with Pakistan on building a natural gas pipeline from Iran and other issues of bilateral cooperation in the hydrocarbon sector, the Minister indicated. "The Prime Minister of Pakistan, Mr Shaukat Aziz, has invited me to continue negotiations in Islamabad in April," Mr Aiyar said. However, the trip may be delayed until the second week of May because of a clash in the Petroleum Minister's schedule.

Besides meeting Mr Aziz, the Petroleum Minister would also meet his Pakistani counterpart to discuss the Iran-India pipeline, and diesel and petrochemical exports from India. Mr Aiyar has scheduled his visit to Pakistan just before his June visit to Tehran to seal a deal for import of natural gas from Iran, which would pass through Pakistan. Pakistan's invitation to India to resume talks in April was sent on March 26, Mr Aiyar said.

The US Secretary of State, Ms Condoleezza Rice, during her visit to India on March 16, had expressed America's "concerns" about India's plan to buy gas from Iran. The $4.16-billion, 2,775-km pipeline from Iran through Pakistan to India would supply gas to power and fertiliser producers in India.

India had previously stated it would deal only with Iran on the pipeline and it would be Tehran's job to get the Pakistani transit and guarantee gas delivery at Indian borders. The Minister would discuss issues such as route of the pipeline and transit fee with Pakistan, which would have an important bearing on the cost of the gas.

India and Iran are currently engaged in detailing techno-commercial issues such as gas volumes, route and pricing and the Petroleum Minister's visit to Tehran would be for signing a firm pact.

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