India, Iran in fresh round of energy talks
India and Iran have started a new round of energy talks after a lapse of
almost two years.
At a meeting between the Managing Director of National Iranian Oil Company
(NIOC), Mr Seifollah Jashnsaz, and the chiefs of Indian energy sector
companies and senior Government officials here on Monday, issues such as
supply of liquefied natural gas (LNG) from Iran, import of crude oil,
opportunities for ONGC Videsh Ltd, and the proposed multi-million dollar
Iran-Pakistan-India gas pipeline project were discussed.
After meeting with the Minister for Petroleum and Natural Gas, Mr Murli
Deora, Mr Jashnsaz told newspersons, "Today Iran is in a special position to
provide energy to friendly countries like India."
On if the 5-mtpa LNG deal inked in 2005 has been cancelled, the NIOC
Managing Director said, "The deal that you are referring to was never
cancelled. There needed to be some amendments. We hope to touch upon that
contract in these meetings during our trip, and hopefully we will find a
solution."
A sale purchase agreement was signed in June 2005 in Tehran for five mtpa of
LNG supply for 25 years between National Iranian Gas Export Company (NIGEC)
and the Indian consortium of GAIL (India), Indian Oil Corporation and Bharat
Petroleum Corporation. The contract was to begin from the last quarter of
2009.
The parties had also signed a letter in June 2005, according to which NIGEC
would obtain approval of its parent company - NIOC - for the sale purchase
agreement to become effective. NIGEC has not conveyed NIOC's board approval
to India.
Discussions on the ONGC Videsh Ltd (OVL)-led consortium OVL, Indian Oil
Corporation and Oil India - be given rights to develop the gas field it
discovered in the offshore Farsi block were also held. India is also seeking
a 20-25 per cent stake for OVL in phase-12 of the gigantic South Pars gas
field in the Gulf.
New Delhi: 01 December 2009, Business Line
