Iraq Rules Out Special Oil Price for India

By John Lee.

Iraq has ruled out offering any special oil price to India because its laws don't allow it to do so, reports the Economic Times.

"Our laws do not allow us to offer any special pricing to anyone. We can sell crude only at the existing market- determined prices," Iraqi Deputy Prime Minister for Energy Hussain al-Shahristani (pictured) said.

India imports about 20 million tonnes of crude oil from Iraq annually, making it the second-largest supplier of oil to the country.

Noting that India's oil demand will rise 4-5 per cent annually, Shahristani offered uninterrupted oil supplies and also sought increased investments into his country, which needs USD 500 billion to improve infrastructure after the war-time destruction.

"India can count on Iraq as a dependable, long-term supplier of its crude oil needs," he said.

Last month, Oil Minister Veerappa Moily had said Iraq has already offered three discovered oil blocks to India in the Middle Furat oilfields - Kifil, West Kifil and Merjan oil blocks.

(Source: The Economic Times)

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