IOC ready to set up plant in Yemen, but wants gas field in return

New Delhi, Jan 19 | Updated: Jan 20 2007, 05:30am hrs
Domestic oil refining and marketing major Indian Oil Corporation (IOC) on Thursday said it would consider setting up a petrochemical plant in Yemen provided it was allocated a gas field.

Yemens oil minister Khalid Mahfoudh Dahah, who is in India to attend the five-day international oil and conference Petrotech 2007, has invited Indian oil and gas companies to come and invest in Yemen particularly in the field of refining and petrochemicals. A proposal for setting up a refinery has also been extended to ONGC, which too has sought an oil field in return from the Yemen government.

IOCs director (business development) B M Bansal said IOC was planning big forays into petrochemical business and it saw Yemen as an opportunity to expand in the overseas markets. We are looking at big investments but we need a gas source for it.

We can also build refineries and set up LNG plant if they want, he said. Dahah said he had invited petroleum minister Murli Deora to visit the Gulf country to further investment proposals of the Indian companies.

We are proposing a technical cooperation committee between the two governments and Deora has verbally accepted my invitation to visit Yemen within a months time, he said. Yemen was open to exporting natural gas to India provided it found more gas reserves.

The current 17 trillion cubic feet gas reserve were all committed to domestic and long term consumers overseas, he said.