Tuesday, Sep 28, 2010
(Adds comments from Indian oil minister, Kuwait oil minister
By Rakesh Sharma
Of DOW JONES NEWSWIRES
NEW DELHI (Dow Jones)--India is seeking additional crude oil supplies from Kuwait as the world's second-fastest growing major economy tries to meet rising energy demand.
Indian Oil Minister Murli Deora said the country currently buys 11 million tons of crude a year from Kuwait.
"We requested him (the Kuwait minister) to enhance supplies," Deora told reporters after a meeting with Kuwait's oil minister, Sheikh Ahmad Abdullah Al-Sabah. "He agreed in principle."
India currently imports about four-fifths of its crude oil requirements. The South Asian nation has been trying to secure long-term crude supply contracts with various countries to meet growing energy demand from homes and industries.
Al-Sabah said Kuwait can't raise crude supply to India at its own wish as it is part of the 12-member Organization of Petroleum Exporting Countries.
"So, this (raising the supply) is based on (the) future development in oil markets," the minister said. "Definitely, we will look into long-term agreements and also the Indian counterpart should look into using our ships in taking the crude from Kuwait."
Kuwait is the fifth-largest producer among the OPEC members.
Monday, Al-Sabah said Kuwait has discussed with Indian Oil Corp. the possibility of increasing long-term crude supplies to the company, which accounts for 28% of India's installed capacity of 3.76 million barrels a day.
Indian Oil Chairman B. M. Bansal said Kuwait now supplies nine million tons a year to the company. He added that the refiner's crude oil requirement will rise after commissioning a 300,000-barrels-a-day refinery and petrochemicals complex at Paradip in the eastern state of Orissa.
-By Rakesh Sharma, Dow Jones Newswires; +91-11-4356-3305; santanu.choudhury@dowjones.com
(END) Dow Jones Newswires
28-09-10 0922GMT
