Iran offering attractive terms for oil sale to India

Iran offering attractive terms for oil sale to IndiaThe government in the Islamic republic of Iran is offering attractive terms for sale of fuel to India as it faced stiff international sanctions over its nuclear programme.

The government of Iran has offered oilfields on lucrative terms, routing gas pipeline through sea to avoid Pakistan and insurance to refiners if India is ready to increase the level of oil imports from the country. A high level delegation headed by Iranian Oil Minister Rostam Ghasemi is in India to convince the country to increase oil imports from Iran.

India has been reducing the amount of oil it buys from Iran and it fell to 13.3 million tons in 2012-13 from 18 million tons in the previous year. The import is expected to be even lower this year at 11 million tons as the Mangalore Refinery and Petrochemicals Ltd (MRPL) has not imported any oil from Iran yet.

The official statement said, "The Iranian side encouraged the Indian side to increase its crude purchase. The Indian side explained that it would encourage companies to maintain their engagement in terms of crude oil purchase, taking into account their requirements, based on commercial and international considerations."

The governments in Europe and the US are urging Asian countries to reduce oil imports from Iran so as to make their sanctions more effective in order to force Tehran to come clean on its nuclear programme. Iran is suspected of covertly developing nuclear weapons, a charge it denies and maintains that it has the right to harness civilian nuclear energy for generating power.