RIYADH / NEW DELHI, 29 March 2005 — India’s Minister of Petroleum and Natural Gas Mani Shankar Aiyar said yesterday that India was looking for long-term oil contracts with Saudi Arabia.
He said this in New Delhi while addressing a press conference before leaving for Riyadh on at hree-day visit during which the modalities of long-term oil contracts could be established. India wants “longer contracts than we have now,” he said.
Later in Riyadh, Aiyar reaffirmed India’s position on $4 billion India-Pakistan-Iran gas pipeline project and stated categorically that he will be traveling to Islamabad and Tehran in May and June respectively to hold further talks on the project. When asked about US concerns on the pipeline issue, he said that “our relations with the United States have reached a mature stage where the two countries can have some disagreements on certain issues.”
Aiyar, while speaking to newsmen here after delivering a lecture on “Asian Energy Vision” in the evening, said that “New Delhi is persisting with the pipeline project and I have had two detailed discussions with my Iranian counterpart - one in Tehran and another one in Delhi”. The lecture, hosted by International Energy Forum (IEF), was attended by a number of Saudi officials, diplomats and newsmen.
Asked about plans to ensure long-term energy imports from Saudi Arabia, Aiyar said that “the total of India’s oil imports from Saudi Arabia will double soon”.
He said that India already imports about 24 million tons of crude from Saudi Arabia every year, which is 26 percent of its total crude imports. “We now want to secure long-term contracts with an assured delivery every year”, said the minister.
Asked about the agenda of his talks with Saudi officials in Riyadh, he said that “the talks with my Saudi counterpart will be in continuation of what we already had in Vienna and Delhi”. He, however, said that India is pursuing acquisition of equity in oil and gas abroad, besides exploration acreages and producing properties. Indian public sector firms had participating interests in oil and gas projects in Vietnam, Sudan, Russia, Iraq, Iran, Myanmar, Libya, Syria, Australia, Ivory Coast, Qatar and Egypt.
Speaking about proposals to be discussed for energy cooperation with Saudi Arabia, Aiyar said that “the two countries want their relationship to go further and I will be able to spell out more details after holding talks with Saudi officials”.
New Delhi and Riyadh have shown keen interest to boost cooperation in the oil sector and companies like HPCL are looking at partnering Saudi Aramco for setting up refineries in both Saudi Arabia and India. The two companies are also exploring joint marketing activities in India.
During his trip, Riyadh may also be roped in to maintain strategic oil reserves in India. Aiyar is betting big on Saudi Arabia and is keen on wide ranging collaborations, which in turn would act as models for future pan-Asian deals.