Iraq agrees to immediately re-negotiate with OVL for finalizing contract for Oil Block-8

3 discovered Blocks offered to India; Iraq to consider investment in

IOC’s Paradip Refinery

India and Iraq to sign a number of MoUs for cooperation in various sectors

Gas sale & purchase agreement signed between Turkmenistan and Afghanistan to complete commitment of four countries for

 TAPI gas pipeline project

Steering Committee for TAPI pipeline project decides to form TAPI Ltd in time bound manner; committed to complete the project by 2017

PRESS NOTE

         Dr. M. Veerappa Moily, Minister (P&NG) led an Inter-Ministerial delegation for participation in the 17^thJoint Commission Meeting (JCM) between India and Iraq to Baghdad on 7-8 July 2013.  Thereafter, the Minister visited Ashgabat, Turkmenistan to participate in the 17^th Steering Committee meeting of Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline project on 9.07.2013.

2.      Minister (P&NG) met the Prime Minister H.E. Mr. Nourie Al Maliki, and the Deputy Prime Minister H.E. Dr. Saleh Al Motlaq and a host of other dignitaries from the Iraqi Government. 

3.      The deliberations at the JCM were marked by cordiality and warmth.  Several important decisions were taken in the meeting of the JCM.  In the energy sector, the Iraqi side agreed to immediately re-initiate negotiations with OVL for finalizing the contract for Oil Block 8, a matter which had been pending for almost a decade.  In response to the request of Minister (P&NG), the Oil Minister of Iraq, leading the Iraqi delegation at the JCM, offered 3 discovered Oil Blocks in the Middle Furat Oil Fields on nomination basis.  Iraq also agreed to consider investment in the upcoming 15 MMTPA oil refinery of Indian Oil Corporation Limited (IOCL) at Paradip.  The Iraqi side also expressed interest in the proposal of IOCL for participation in a refinery project in Iraq.  Iraq committed to meeting the long term requirement of crude oil of India and was also open to consider more favorable commercial terms including extending the interest free credit period from 30 to 60 days.  Possibilities for cooperation in the gas sector that could, inter-alia, include import of LNG from Iraq, Indian participation in exploration as well as value addition through petrochemical projects and liquefaction terminals in Iraq were discussed.  Minister (P&NG) also highlighted the keenness of Indian companies for participation in the Nassiriya integrated project which was welcomed by the Iraqi side.  It was agreed that the companies would urgently mount delegations to initiate discussions on the various areas of agreement.  It was also agreed that a formal MoU on cooperation in the energy sector would be signed between the two sides during the forthcoming visit of the Iraqi Prime Minister to India later this year.

4.      The Indian side expressed keen interest on investment in existing and new Ammonia-Urea plants. After detailed deliberations it was agreed to have a Letter of Intent and Confidentiality agreement to establish an Urea Plant and Phosphate fertilizer Unit as joint sector projects in Al-Qaim/Al-Anbar area in Iraq which has all facilities like water, natural gas, railway connectivity to the Port, Phosphate etc., which are crucial requirements for the success of the fertilizer projects.  Natural gas will be tied up for the plant by the Iraqi Government.  It was also decided that a Technical Committee may be deputed to Iraq to have detailed discussions further to enable both the Governments to finalize the agreement.

5.      Considering the abundant availability of Sulphur in Iraq, India expressed its intention for immediate import of Sulphur from Iraq.  Both sides agreed to take immediate steps to work out the details.

6.      The issue regarding pending dues of Indian Companies of US $ 2.29 billion was discussed in detail and it was agreed that Iraq would examine the same and revert before the visit of their Prime Minister to India. Both sides also agreed to expand the trade basket and make it more diversified.

7.      It was also agreed that the following agreements / MoUs be discussed and finalized at an early date: 

     I.                             MOU on Cooperation in the Energy Sector

  II.                             Confidentiality Agreement & LOI for the Fertilizer Plant

III.                             MoU on Cooperation in Agriculture

IV.                             MoU on Cooperation in Water Resources Development and Management

  V.                             Cooperation in Trade

VI.                             Cultural Exchange Programme CEP

VII.                             Education Exchange Programme

VIII.                             MoU on Cooperation in the field of Sports & Youth Affairs.

IX.                             MoU on Cooperation in Healthcare and Medicine

  X.                             MoU on Cooperation in the field of Science & Technology

XI.                                               MoU on Cooperation between Bureau of Public Sector Enterprise and Ministry of    Industry

XII.                             Mutual Legal Assistance Treaty

XIII.                             MoU on cooperation between MEA and MFA

XIV.                             MoU on Cooperation between FSI and Diplomatic Training Institute

8.      During the visit to Ashgabat, Turkmenistan on 9.07.2013, the Minister (P&NG) met H.E. Mr. Gurbanguly Berdimuhamedov, Hon’ble President of Turkmenistan prior to the 17^th Steering Committee meeting for the Turkmenistan, Afghanistan, Pakistan & India gas pipeline (TAPI) project.  The Turkmen President gave a categorical personal commitment and expressed strong determination for the timely implementation of the TAPI project.  It was indicated that the TAPI project was only a beginning in the substantial expansion of bilateral cooperation in the hydrocarbons sector between the two countries.  The President expressed hope that cooperation between the two countries would be extended further in the downstream sector and the process industry.  The necessity for selection of an appropriate consortium leader at the earliest was also agreed upon and the Hon’ble President assured that Turkmenistan would extend all support to achieve this objective.

9.      A positive ambience for the Steering Committee meeting was created by signing of the Gas Sales and Purchase Agreement (GSPA) that had, so far, been pending between Afghanistan and Turkmenistan; thereby completing the explicit commitment of all four countries involved in the project.  The Steering Committee decided to conclude the Transaction Advisory Services Agreement and the formation of TAPI Limited in a time bound manner and committed to the timeline for completion of the project by 2017.

10.    The TAPI parties noted that the major objective of the Transaction Advisor Services was to search for a lead partner in the consortium (the consortium leader) and this ought to be explicitly reflected in the Transaction Advisory Services Agreement.  The Parties stressed that a suitable Consortium Leader is necessary for implementation of the TAPI Project.  A shortlist of companies will be provided by the Turkmen Party to the Buyers by October/November, 2013 for consideration under competitive solicitation as the potential Consortium Leader for TAPI Limited.
Courtesy (pib.nic.in) Press Information  Bureau