The Hindu Business Line : India, Yemen ink pact on cooperation in oil sector

What it means
The two Governments will encourage investment in the entire chain of hydrocarbon sector including exploration and production, refining and petrochemical industries.
The protocol also provides for setting up of specialised joint committees under the ministerial committee for continuity in the efforts of mutual cooperation.

New Delhi, Feb. 3 India and Yemen on Saturday signed a protocol of bilateral cooperation in the oil and gas industry. The protocol was inked between the Union Petroleum Minister, Mr Murli Deora, and his counterpart, Mr Khaled Mahfoudh Bahah, in Yemen.

According to an official communiqué, the protocol provides for the two Petroleum Ministries to become members of the Yemeni Indian Ministerial Committee for activating investment of Indian companies in a wide range to cover petroleum industries.

It also states that the two Governments will encourage investment in the entire chain of hydrocarbon sector including exploration and production, refining and petrochemical industries, besides, extending support in training and carrying forward co-operation in scientific areas.

The protocol also provides for setting up of specialised joint committees under the ministerial committee for continuity in the efforts of mutual cooperation, the statement said.

dedicated software

Mr Deora is leading a high-level delegation to Yemen. Speaking on the occasion, Mr Deora said India was prepared to provide all assistance to Yemen in standardising its bidding system for exploration blocks. This also includes developing dedicated software suitable for Yemeni conditions. ONGC was prepared to extend assistance in carrying out extensive surveys and other investigations for locating potential hydrocarbon bearing areas, he said. It was also pointed out that ONGC could join Yemeni companies to develop the discovered fields in which they have rich experience.

Recognising the friendly gestures and support of India, the Yemeni Minister, Mr Bahah, assured Mr Deora that Yemen would be finalising award of contracts for blocks offered under their third round by March, in which the consortium of oil PSUs - Oil India and Indian Oil - have also won two blocks and GSPC three blocks.

Reliance Industries obtained stakes in two blocks earlier. He invited Indian companies to participate in the fourth round which Yemen would be announcing in the second half of 2007 and also invited Indian investment in other areas of oil and gas sector. The Yemeni side exhibited keen interest in the Indian proposal to develop city gas distribution projects in Yemen.

IOC proposal

The Indian delegation sought positive consideration of Indian Oil's proposal for selling one million tonne of Masila crude oil to it on term contract basis. The Yemeni side assured to examine this issue at an early date after they finalise the official selling price mechanism, which is under review. The Indian side also informed that Indian Oil would be sending a team of technical experts to study the revamping of Aden refinery once Yemen finalises the schedule in this regard. The Aden refinery has a capacity of 120,000 barrels per day.

Mr Deora also called on the President of the Republic of Yemen, Mr Ali Abdullah Saleh, at Yemeni capital, Sana.

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