New Delhi, Dec. 3: Iranian Petrochemical Company and the country’s largest refiner Indian Oil Corporation will sign an agreement this month for setting up a petrochemical plant in gas-rich Iran.
Iranian deputy petrochemicals minister Mohammad Reza Nematzadeh made an offer for cooperation between the two companies at a meeting with petroleum minister Ram Naik yesterday, a government press release said here.
The plant, which would use abundant natural gas reserves as feedstock, would produce a range of petrochemicals and intermediates for export market in Europe and south-east Asian countries.
Naik expressed Indian companies’ willingness to venture into projects like refinery revamp and maintenance and city gas distribution projects. Indian state-run firms will study the Iranian offer of some oilfields for exploration and production.
A team of Indian officials is visiting Tehran this month to evaluate Iranian offer on three producing oilfields of Parsi reservoir (daily production of 100,000 barrels), Sarvak in north Azadegen (46,000 barrels per day production) and Cheshmeh Khush (31,000 barrels per day) and semi-developed oilfields of Abadan plain and Saveh-Gartnsar.
It may be recalled that during Naik’s visit to Tehran in May 2003, the two sides had agreed to enhancing cooperation in the oil sector. It was agreed to formalise a package comprising import of 5 million tonnes of liquefied natural gas (LNG) by India in exchange for discovered and semi-discovered oilfields.