Iran, India to expand energy ties during post-sanctions era

TEHRAN, Apr. 10 (MNA) – Minister of Oil Bijan Zangeneh said Iran is ready to increase its oil exports to India from the current volume of 350,000 barrels per day (bpd) now that the sanctions have been lifted.

Speaking at a joint press conference with Indian Minister for Petroleum and Natural Gas Dharmendra Pradhan here on Saturday, Zanganeh said that energy sector can be determining in development of Tehran-New Delhi relations.

He underlined that Indian firms willingly seek to invest on Iran’s oil, gas, and petrochemical projects.

"Islamic Republic is ready to facilitate energy ties with India in several areas including providing natural gas to Indian petrochemical projects as well as other energy-intensive projects in Iran," he added.

Top on the agenda of talks between Iran and India, Zangeneh added was the investment to develop Farzad-B offshore gas field and the settlement of debts that Indian companies owe Iran for previous oil imports from the country.

“It was decided that Iranian and Indian sides agree on the schedule of implementing the project which is a demanding job and take time,” he noted.

Pointing to the meeting between the Indian minister also held a meeting with the Governor of Central Bank of Iran Valiollah Seif, Zangeneh announced that both sides agreed to continue the previous methods of payment between Iran and India.

Dharmendra Pradhan, for his part, said Iran and India's energy ties are no longer limited to crude oil imports," and that India was ready to invest $20 billion in the port of Chabahar in Southeastern Iran.

He added that "energy sector can be determining in development of Tehran-New Delhi relations."

He further voiced India’s willingness to invest in Iranian energy projects, including the development of Farzad B gas field in the Farsi offshore block near the port city of Chabahar.

"India will clear its debts to Iran for crude oil imports in the near future," the Indian official said. 

The two sides have agreed to use the US dollar as the basis for the calculation of the debts, he said, adding that the payments will start as soon as Iran declares its accounts and gives details to Indian side.

Heading a delegation of major private sector representatives from oil, gas, and energy fields, Indian Pradhan arrived in Tehran on Saturday.

The visit is the first by an Indian minister following removal of sanctions as India wants more oil imports and shipments of natural gas from Iran.

Pradhan is scheduled to travel to Chabhahr port to visit the petrochemical site under construction by Indian firms for production of fertilizers before winding up his visit to Iran.

 

LR/IRN82028078,IRN82028047

 

News Code 115685

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