IOC, Callick in Turkey refinery deal

Indian Oil Corporation (IOC) is likely to conclude an agreement with Callik Energy of Turkey for setting up a grassroots refinery in that country.

This will be part of a series of agreements likely to be signed by Indian Oil and ONGC Videsh Ltd (OVL) with companies of eight countries over the next few days.

India will also sign six agreements with Korea for enhancing cooperation in the hydrocarbons sector during the roundtable meeting of North and Central Asian oil producers with major Asian oil consumers.

The roundtable is to be held here on November 25 as part of efforts to enhance energy dialogue among leading producers and consumers in the continent, Petroleum Secretary SC Tripathi told reporters today.

It follows the meeting in January this year where major Asian consumers met South-east and West Asian oil producers. "The idea is to explore areas of common interest such as stability of oil prices, security and sustainability through interdependence and mutual cooperation," Tripathi said.

The issues to be discussed include the role of Asian oil markets, crisis-cross investments in each other's countries and the viability of an Asian gas grid, among others, he said.

Participants like China, Japan, South Korea and India are the biggest consumers of petroleum products while North and Central Asian countries such as Russia, Turkmenistan, Kazakistan, Uzbekistan, Azerbaijan and Turkey are the principal oil and gas producers.

The memoranda of understanding (MoUs) with Korea include those for hydrocarbon cooperation, strategic underground petroleum storage, technical collaboration on gas hydrates, hydrogen, CNG and fuel cells.

ONGC Videsh Ltd (OVL) and Korea National Oil Company would sign an MoU for a strategic alliance, which may translate into joint bidding of oil and gas assets in the future. OVL would also be negotiating with the Kazakh delegation a stake in two oil and gas exploration blocks in that country.

The MoU with Turkey would cover wide-ranging cooperation in the hydrocarbons sector, he said, adding issues of bilateral importance would also be discussed on the sidelines of the one-day conference.

Asia has emerged as a major oil consumption centre, accounting for 40 per cent of the world's total of 82 million barrels per day. Led by India and China, demand in Asia was rising faster than the global average. Tripathi said this made it imperative to have closer cooperation between Asian producers and consumers.

The conference would be chaired by Petroleum Minister Mani Shankar Aiyar and co-chaired by Russian Energy Minister V Kristenko. Energy ministers and representatives from Korea, Uzbekistan, Japan, Kazakhstan, Azerbaijan and Turkey would also take part in the meeting.

China would be represented by its ambassador to India, Sun Yuxi. Besides, officials of leading oil firms from Russia, Korea and other countries would be visiting India, Tripathi said.