Friday, June 10 2005 09:26 Hrs (IST) - World Time -

New Delhi: Petroleum and Natural Gas Minister Mani Shankar Aiyar yesterday (Jun 9, 2005) afternoon called on President of Azerbaijan, IIham Aliyev.

Aiyar, who is in Azerbaijan to attend the 12th International Caspian Oil and Gas Conference, conveyed to the President India's deep interest in expanding bilateral cooperation in the oil and gas sector, an official release said in New Delhi.

He specifically referred to the possibility of purchase by India of Azeri oil transported to Ceyhan by the Baku-Tbilisi-Ceyhan (BTC) pipeline, and then brought to the Red Sea through the Ashkelon-Eilat pipeline in Israel.

Aiyer also mentioned to the Azeri President India's interest in the upgradation of refineries in Azerbaijan and to participate in oil and gas exploration and production proposals in the country.

Aiyar informed Aliyev about his discussions in Islamabad in regard to the Iran-Pakistan-India pipeline and the Turkmenistan-Afghanistan-Pakistan (TAP) pipeline. In regard to the latter, the Indian Minister suggested that Azerbaijan, along with other Central Asian countries such an Uzbekistan and Kazakhstan and possibly, Russia, could also join the pipeline to bring gas to India and Pakistan, whose joint shortfall of gas in 2025 would be about 500 million standard cubic metres per day.

President Aliyev welcomed the proposals made by Aiyar. He said he fully supported the need to expand bilateral hydrocarbon relations between the two countries with a view to diversifying existing engagements.

Aliyev specifically welcomed India's offer to invest in the upgradation of refineries and to purchase Azeri oil brought to Ceyhan by the BTC pipeline. The President welcomed India's participation in exploration and production contracts.

He said a number of international companies were already represented in Azerbaijan and that the Government had so far invested $17 billion in this sector.

The President showed deep interest in the TAP pipeline project and assured the Indian Minister that Azerbaijan would participate in it if it were found to be technically and economically viable. He said Azerbaijan recognized the need to diversify its markets in the oil and gas area and that India was a very attractive partner in this regard.

He said Azerbaijan had made certain major gas discoveries recently which made it all the more necessary that markets with long term value be identified and supplies firmed up.

The President accepted the proposal of Aiyar that an India Azerbaijan Joint Working Group on Hydrocarbons Cooperation be set up to specific proposals identified for bilateral cooperation within a time-bound framework.