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Iraq offers India stake in three discovered blocks

The country has also shown interest in a IOC's proposal for participation in a refinery project in Iraq

Shine Jacob  |  New Delhi 

The government of Iraq has offered three discovered oil blocks to India in Middle Furat oil fields on nomination basis. Besides, the West Asian energy major will also invest in the Rs 30,000-crore Paradip refinery by IndianOil Corporation (IOC).

The country has also shown interest in a IOC’s proposal for participation in a refinery project in Iraq. Apart from this, India may also buy crude oil worth $20 billion from Iraq.

“A lot of these things would be finalized during the visit of Iraq Prime Minister to India. They have currently offered three discovered oil blocks, the size of which is comparatively higher,” said M Veeraappa Moily, minister for petroleum and natural gas.

Iraq government also indicated that it is open to consider more favorable commercial terms including extending the interest free credit period from 30 to 60 days. Other major decisions included the country looking into LNG imports from Iraq and possibility of Indian participation in exploration as well as petrochemical projects.

During a Moily-led team’s visit to that country, the Indian side expressed interest on investment in existing and new ammonia-urea plants.

“After detailed deliberations, it was agreed to have a letter of intent and confidentiality agreement to establish a urea plant and phosphate fertilizer unit as joint sector projects in Al-Qaim/Al-Anbar area in Iraq. India may also import sulphur from that country,” Moily added. At least 14 MoUs would be signed in various sectors between the two countries soon.

TAPI pipeline to be built by 2017

The petroleum minister has indicated that the Turkmenistan-Afghanistan-Pakistan-India pipeline would be in place by 2017.

There were reports that the four countries — now working under a special purpose vehicle called TAPI Ltd — are set to sign a transaction advisory deal with the Asian Development Bank (ADB) this week in order to raise money for the project.

The overall cost of the project is expected to be $9 billion. The Turkmenistan government was earlier reluctant to giving participating stakes for the companies in hydrocarbon fields, which swayed away global majors from the project through terror-torn area.

“A shortlist of global majors would be in place by November this year for consideration under competitive solicitation as potential consortium leader,” Moily said. The 1,680 kilo metre pipeline route will start from the South Yolotan-Osman field in Turkmenistan, passing through Herat, Helmand and Kandahar in Afghanistan via Quetta and Multan in Pakistan and finally ending at Fazilka in India.

The 1,680 kilo metre pipeline route will start from the South Yolotan-Osman field in Turkmenistan, passing through Herat, Helmand and Kandahar in Afghanistan via Quetta and Multan in Pakistan and finally ending at Fazilka in India.

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First Published: Thu, July 11 2013. 18:42 IST
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