Saudi Arabia is all set to increase its allocation of crude oil to India by about 15 million metric tones (mmt) per annum to about 40 mmt. The Saudi Arabian minister of petroleum and mineral resources Ali bin Ibrahim Al Naimi assured this to Indian Minister of petroleum and natural gas Murli Deora in Riyadh recently India presently gets 25.5 mmt of crude oil a year from the kingdom.

Deora had earlier hinted that India intends to double the crude oil supply from Saudi Arabia as its three grass-root refinery projects at Bhatinda, Bina and Paradip will be ready in the near future.

Al Naimi at his end said that Saudi Arabia is well-equipped to meet the requirements of both the Indian companies comprising both public and private refiners.

Deora is in Riyadh as part of a bigger team led by Prime Minister Dr Manmohan Singh.

Indian public sector units are also planning to set up an office in Riyadh in an attempt to boost the cooperation between two countries in the oil-field related services. India has also expressed its intention to source heavier crude from Saudi Arabia.

Talks also focused on exchange of technical personnel between the two nations, as well as training on skill development in the oil and gas sector.

After the talks, Deora informed that Saudi Arabia is committed to supplying India’s needs in petroleum and India will possibly extend cooperation in the field to include petrochemicals and refineries and hydro carbonic industries as well.

At present India imports over 20 percent of its oil requirements from Saudi Arabia and the Kingdom is said to be India’s fourth largest commercial partner

India’s demand for oil might triple by 2020, thereby making the country the third largest oil importer in the world.

Singh held talks with King Abdullah, that covered areas like security, economic, defense and political.

Saudi Arabia and India also entered into five agreements including an extradition treaty and the transfer of sentenced persons serving jail terms in Saudi Arabia.

Source: gather.com