Tuesday, May 15, 2007
Iraq to invite India to establish refineries
Oil
(NDTV Profit) - Iraq will press Indian firms to set up refineries there during a four-day visit to India by Oil Minister Hussain al-Shahristani later this month, an Iraqi official said on Monday. "We will invite India to establish refineries in Iraq ... the capacity of our refineries is very limited," said Muayad Hussain, Iraq's charge d'affaires in India. Shahristani is due in India from 24-27 May.
Iraq has a refining capacity of 603,000 barrels per day. It produces 477,000 bpd of refined products and consumption stands at 514,000 bpd, according to the OPEC Web site. During a visit to the Saudi capital Riyadh earlier this month, Oil Minister Murli Deora met Shahristani. The participation of Indian state explorer Oil and Natural Gas Corp. and other firms in Iraq's oil sector was raised.T he Iraqi minister invited Indian Oil Corp. and Engineers India Ltd. to consider entering the downstream sector.
Hussain said in New Delhi that the exploration of the Tuba oil field in southern Iraq could also feature in talks between the two countries. ONGC, Reliance Industries Ltd. and Algeria's Sonatrach tried in 2000 to secure Tuba. Iraq is expected to enact an oil law by May-end that would allow its various regions to negotiate oilfield contracts with foreign investors.
Baghdad desperately needs foreign investment to revive its shattered economy, which relies heavily on oil export revenues. The country straddles the world's third largest oil reserves. Decades of war, sanctions, under-investment and now widespread violence and sabotage have left it critically short of fuel. It has to import nearly half of all its gasoline. Iraq has eight refineries, none of which were damaged during the U.S.-led invasion in 2003. Oil officials say that Iraq's refineries are operating at only 50-75 percent of capacity, forcing Baghdad to import most of its fuel.
Labels: Engineers India Ltd., Hussain al-Shahristani, India, Oil and Natural Gas Corp., oil refineries, Tuba oil field
