Eager to open crude supply to India, Indonesia will dispatch soon two cargoes of oil for test refining by Indian oil corporation, petroleum minister Ram Naik said yesterday.
If Indonesian crude was found suitable for refining by oil companies in the country then India would open a supply line from Jakarta, Naik, who just returned from Indonesia after participating in international oil conference, told reporters here.
"So far Indonesia doesn't supply crude to india. They have shown keenness to sell oil to us and we will go ahead if results of refining are suitable for our companies," he said.
Naik, who met the Indonesian president and petroleum minister during his stay in Jakarta, said they also invited India to explore oil in that country and a team of engineers from ONGC Videsh Ltd would reach there on September 27.
"We have strong ties with Indonesia. We want to consolidate these further and establish trade relations in the petroleum sector," Naik said adding that Indonesian vice-president Megawati was coming to India in November.
Beginning of Indo-Indonesian oil relationship assumes significance in the wake of India's import dependence to the extent of 70 per cent of her crude requirement and Indonesia's importance among Opec group.
Naik said ONGC chairman and managing director Bikash C Bora was with him in Indonesia and held discussions with that country's national oil company over the prospects of exploration and production.
Apart from crude supply and exploration, Indonesia was also keen to supply liquefied natural gas (LNG) to India, he said adding that a memorandum of understanding for this was expected to be signed in the next two months.
The LNG supply would depend on the requirement of Indian companies and the bidding process, he added.
