Amid growing tension over US and EU sanctions on importing oil from Iran, Prime Minister Manmohan Singh has scheduled a three-day visit to Tehran for the coming Non-Aligned Summit where he is also likely to hold discussions to strengthen trade ties between the two countries.
Sources said that the PM-led delegation would also use the sidelines of NAM summit to discuss issues pertaining to the country?s oil and gas sector where uncertainties have cropped up over international sanctions. Singh would be the first Indian PM to visit Tehran after Atal Bihari Vajpayee, who went to the country in 2001.
Due to imposition of sanctions, Indian oil companies have been consistently reducing their dependence on importing oil from Iran and further making arrangements to source oil from different geographies. Being a major importer of oil, India does not want to completely stop this import route and work out a middle path where imports could continue despite sanctions.
The country?s largest buyer of Iranian crude, Mangalore Refinery and Petrochemicals Limited (MRPL), has reduced its oil imports to 5 million tonne this fiscal from 6.2 million tonne in 2011-12. MRPL bought around 7.1 million tonne of crude oil during the year 2010-11.
The companies are also facing hurdles on making payments for the imports. Though the government has made some progress over the payment issue, the matter remains far from getting resolved and the two sides are expected to work out a more permanent solution to it.
A source said that the two sides may also revive the old issue of having a gas pipeline between Iran and India passing through Pakistan. The project has been on the back burner for last few months despite broad agreement reached between the three countries over sharing and payment for the resource.
Also the foreign investment arm of state-owned oil explorer, ONGC, are facing tensions due to international sanctions for their further investment in the prolific Farsi block as pressure from Iran mounts to sign formalities soon.
?The company so far has made an investment to the tune of around $40 millions in the gas fields but further investment is currently at halt due to some problems cause of international sanctions. They are in continuous dialogue with government agencies and hope the matter to get resolved,? said an oil ministry source.