India, Iran Talk to Smooth Oil Flow, Remove Insurance Hurdle

His Excellency Mr. Rostam Ghasemi, Minister of Oil of Islamic Republic of Iran visited India for discussions with his counterpart, Dr. M. Veerappa Moily, Minister for Petroleum & Natural Gas, Government of India. In the meeting held on 27 May 2013, the two delegations reviewed on-going cooperation in the hydrocarbons sector.

2. The Indian refiners have a long-standing relationship with the National Iranian Oil Company (NIOC). During the visit, the Iranian side encouraged the Indian side to increase its crude purchase. The Indian side explained that it would encourage companies to maintain their engagement in terms of crude oil purchase, taking into account their requirements, based on commercial and international considerations.

3. The two sides also discussed the marine insurance charged by the Iranian insurance companies for shipment of oil to India and arranging ships for carrying out the voyage.

4. Both sides also discussed the issue of reinsurance cover for the composite insurance of Indian refineries, which has recently affected crude purchase from Iran.

5. The two sides agreed to address the trade balance between the two countries. The Indian side requested the Iranian side to consider sourcing more goods from India to rectify the trade balance. The Iranian side agreed to consider this request.

6. Both sides agreed to discuss outstanding issues related to the development of Farzad B gas field.

7. Both sides agreed to continue the cooperation in supply/ purchase of crude oil and resolve any outstanding issues of mutual interest.