Iraq offers to increase long-term crude supplies to India

Iraq has offered to increase long-term crude supplies to India and has also invited Indian companies to set up refineries there, even as it ramps up crude production capacity substantially in the next few years.

Iraq's minister of industry and minerals Fawzi F Hariri made the offer during a meeting with minister of petroleum and natural gas Murli Deora in New Delhi today.

Hariri also invited Indian companies to invest in the refining sector in Iraq as it has assured supply of crude oil. Iraq, one of the major crude oil suppliers to India, also said that with increasing crude production, it would also be in a position to finalise long-term crude oil supply arrangements with refineries in India.

Deora, meanwhile, offered Iraq the facility to utilise the upcoming crude oil storage facility in India. The visiting minister expressed keen interest in the proposal as the crude oil could be conveniently supplied to various importing centers from the Indian locations.

Deora also proposed utilisation of the services of leading Indian engineering and consultancy firm Engineers India Limited (EIL) by the Iraqi government for developing its oil sector infrastructure.

EIL has been credited with building several Indian refineries in addition to the infrastructure in upstream and downstream sectors of the country. At present, EIL is implementing among others a major greenfield refinery project at Bhatinda, Punjab.

Hariri invited Deora to visit Iraq for taking forward the cooperation in the hydrocarbon sector.