India resolves oil payments row with Iran

Tehran: Iran's national oil company said Sunday a festering $7 billion oil payments dispute with India had been resolved and that there would be no interruption of crude exports. The company had sounded a warning note in July that it could hold back on supplies to Indian refiners should a long festering dispute over payments for past supplies not be resolved soon.

"Following bilateral negotiations, the two sides agreed to settle the outstanding bills as soon as possible," National Iranian Oil Company (NIOC) managing director Ahmad Qalebani told the ministry's website SHANA.

"Part of the arrears will be paid in the next few days and the remaining part will be paid by the Indian customers gradually," he said.

He also confirmed that "oil exports to India are continuing" as usual.

Indian minister for petroleum S Jaipal Reddy let it be known last week that New Delhi had worked out a conduit through a Turkish bank through which it hoped to establish a working arrangement for past and future payments.

An Iranian oil delegation also arrived in the capital over the weekend to sort out the issue.