Asian nations to discuss oil cooperation at meet

The one-day ministerial-level meeting of Asian countries on cooperation in the energy sector is likely to focus on energy security only.

The buyer-seller meet on January 6 might not focus on commercial issues, government officials told Business Standard.

Petroleum Minister Mani Shankar Aiyar, who is the man behind the initiative, has christened it the Ministerial Round-Table Conference-Regional Cooperation/Key to Energy Security. The ministerial might be institutionalised and followed by more such meetings, an official said.

The issue of West Asian oil producers charging a premium from India and other Asian importers of crude oil may be skipped. The latter pay a premium ranging from 60 cents to $1.2 on every barrel of crude bought. The issue is expected to figure in the bilateral talks, which Aiyar will hold with oil-producing countries.

The issue of strategic investment may come up for discussion, though officials said with China and India competing for acreages overseas, a bilateral understanding was a remote possibility.

"The attempt would be to match crude availability with supplies," said an official.

Among the West Asian importers are Kuwait, Saudi Arabia, the United Arab Emirates, Iran, Qatar and Oman. The consumer side will be represented by Japan, South Korea, China, Malaysia and India. Indonesia, which confirmed its participation, is likely to skip the ministerial as it is still trying to cope with the aftermath of Sunday's tsunami.

Officials said the bilateral meetings would be more fruitful to India. Teams from Qatar and Iran are expected to be in New Delhi before the conference.

Qatar's Second Prime Minister in the Energy and Industry Ministry Abdullah bin Ahmed along with a nine-member delegation will discuss natural gas sales to India.

The Organisation of Petroleum Exporting Countries, International Energy Forum and International Energy Agency will also send their representatives.