Iraq Offers Indian Refiners More Crude on Planned Output Gain.
Iraq is offering to supply more crude oil to Indian refiners on long-term contracts as the Middle Eastern country boosts output. Iraq is offering to increase crude sales to India by as much as 60 percent, said an oil ministry official who was at the meeting between India"s Oil Minister Murli Deora and Iraq"s Industry and Minerals Minister Fawzi Hariri in New Delhi today. Indian Oil Corp., the nation"s second-biggest refiner, currently buys about 11 metric million tons, or about 220,000 barrels a day, of Iraqi crude, Chairman Sarthak Behuria said.
?They have the reserves and they have plans to raise output significantly,? said Behuria, who was present at the meeting between the two ministers today. ?They told us they would be ready to offer us longer contracts after five years.?
Iraq is awarding fields to oil companies around the world as it seeks to rebuild its war-ravaged infrastructure and increase oil output five fold to 12 million barrels a day over the next six years. Indian refiners are raising capacity to meet growing demand and seeking long-term contracts where the cost of buying the oil is cheaper then purchases from the spot market.
India will make available to Iraq storage capacity at terminals it"s building on the eastern and western coasts, the oil ministry said in a statement today.
India is building 5 million tons of crude storage capacity and will complete the first tank capable of holding 1.33 million tons of oil by the middle of next year, Oil Secretary S. Sundareshan said yesterday.
Asia"s second-biggest energy consumer may lease out capacity at the terminals to oil companies in exchange for contracts, he said yesterday.