India in talks for long-term petroleum buying pacts

NEW DELHI: India has initiated dialogues with oil producing countries seeking long-term petroleum purchase agreements. This is being done to insulate the economy from the volatile international crude prices.

For a country like India, which has to import 70 per cent of its oil requirements, the volatality in the international price market often has a major impact on domestic product prices and the oil import bill.

“To enhance hydrocarbon security of the country, the government is trying to secure long-term crude pruchase agreements on stable prices,� Petroleum Minister Ram Naik said at a seminar on ‘Attaining India’s self-sufficiency in crude oil’ organised by Assocham here.

India’s total oil requirement is about 105 mt pa. Mr Naik said other options to increase India’s self-sufficiency in crude oil include enhancing domestic production, acquiring equity oil from abroad and exploring non-conventional sources of hydrocarbons.