India eyeing Caspian oil and gas

India, whose energy demands have been growing along with its economy, is eyeing possibilities of its firms picking up stakes in oil and gas fields in the Caspian region to meet its fuel needs.

India's Petroleum Minister Mani Shankar Aiyar will pay a two-day visit to Baku, the capital of Azerbaijan, from tomorrow to explore possibilities of tapping Caspian oil through a pipeline from the southern tip of Azerbaijan across Iran to the Gulf, from where crude can be shipped to India.

India, which imported 95.9 million tonnes crude in 2004-05, has so far not been able to source any crude from the Caspian Sea region due to absence of links with the major exporting ports there.

"Could one drag it (crude oil) down to the Arabian Sea is what I will explore," said Ayar, who earlier this week held talks with Pakistan government officials on laying an a gas pipeline from Iran to India via Pakistan.

The Caspian Sea region, located about 1,600 km south of Moscow, has emerged as a focal point for untapped oil and natural gas resources.

Last month, a pipeline from the southern section of the Caspian Sea to the Turkish seaport of Ceyhan was operationalised, bringing the Caspian oil out of the region for the first time.