Wednesday, July 2, 2008

INDIA AND IRAN DISCUSS ENHANCING COOPERATION IN OIL AND GAS SECTOR

India held wide ranging bilateral talks with Iran and Colombia on the sidelines of the 19th World Petroleum Congress in Madrid, Spain today on further enhancing cooperation in various activities in the hydrocarbon value chain. In a meeting between Shri Murli Deora, Minister of Petroleum and Natural Gas and his Iranian counterpart Mr. GholamHossein Nozari, Iran conveyed its optimism on implementation of Iran-Pakistan-India (IPI) gas pipeline project citing the positive progress made by India and Pakistan in settling outstanding bilateral issues. Mr. Nozari said that Iran was open to considering India´s proposal to change the point of gas delivery from Iran-Pakistan border to Pakistan-India border.

Shri Deora reiterated New Delhi´s commitment to speedy implementation of the IPI pipeline project and said that delivery point issue will be soon discussed with Iran. Expressing satisfaction on the progress made in resolving outstanding issues, Shri Deora said that most of the issues have been settled and some remaining issues will be discussed in the forthcoming trilateral meeting.

Iran also said that it was open to the proposal of ONGC to jointly develop LNG project in Iran with a complete chain by setting up an LNG regassified complex in India with Iranian participation. In respect of approving development plan for Farsi block with ONGC Videsh Ltd as operator (40%) and Indian Oil Corporation (40%) and Oil India Ltd (20%) other partners, the Iranian Minister informed that the commerciality of the project is under consideration and a decision will be taken soon.

GAIL India Ltd proposed developing city gas distribution projects in Iran which was welcomed by the Iranian side, and GAIL was asked to submit a proposal in this regard. In addition, GAIL conveyed its interest in setting up petrochemicals projects in Iran besides participating in development of Iranian pipeline infrastructure.

Earlier, in a meeting with Colombian Minister of Mines and Energy Hernan Martinez Torres, Shri Deora proposed ONGC´s participation in improving oil recovery from the existing fields in Colombia. Mr. Torres conveyed Colombia´s keen interest in utilizing the expertise of ONGC in implementing Enhanced Oil Recovery (EOR) and Improved Oil Recovery (IOR) projects.

The two ministers also reviewed the existing projects involving ONGC Videsh in a producing field and 3 exploration blocks. They expressed satisfaction on the progress in these projects. Shri Deora invited Mr Torres to visit India for taking first hand view of developments in the Indian oil and gas sector.

Shri Deora was accompanied by Petroelum Secretary Shri M S Srinviasan, Indian Ambassador to Spain Ms Sujata Mehta, ONGC CMD Shri R S Sharma, OVL MD Shri R S Butola and EIL CMD Shri Mukul Rothagi.

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