The Iraqi Minister of Oil and Minerals Dr Sadoun Hammadi signed five trade and co-operation agreements with an Indian delegation led by Indian Planning Minister Mr.
The Iraqi Minister of Oil and Minerals Dr Sadoun Hammadi signed five trade and co-operation agreements with an Indian delegation led by Indian Planning Minister Mr. D.P.Dhar in New Delhi on Friday (6 April).
Evolved during negotiations carried out since the Iraqi delegation's arrival in India on 1st April, the Agreements form part of a policy by India to try and buy crude oil supplies direct from the governments of oil-producing countries, instead of through foreign companies.
The five agreements are:
1. Letters establishing a Joint Ministerial Commission for implementing economic, technical and scientific co-operation between India & Iraq.
2. A Technical Co-operation Agreement including exchanges of crude oil and other commodities, and the establishment of projects in Iraq with Indian assistance.
3. A 50-million U.S. dollar credit Agreement to be paid by Iraq in the form of crude of crude oil to India, in return for Indian assistance in building a new refinery in Iraq. The Agreement also provides for the purchase of crude oil by India from Iraq on a long term basis.
4. A preliminary Agreement for oil exploration in Iraq by India.
5. An Agreement in principle to extend co-operation in the field of engineering design for the petroleum industry.
SYNOPSIS: In New Delhi on Friday, an Iraqi Trade Delegation completed eight days of negotiations with the signing of five trade and co-operation Agreements with Indian Officials. The negotiations and subsequent Agreements were sparked off by India's desire to buy supplies of crude oil direct from the governments of oil-producing countries -- rather than through foreign companies.
Iraqi Oil and Mineral Minister Dr. Sadoun Hammadi, seated on the left with Indian Planning Minister Mr. D.P. Oher, signed the first Agreement. All the Agreements involved, in varying depress, the purchase from Iraq by India of bulk supplies of crude oil, both for the present and in the long term.
In return India agreed to assist, with money and technical expertise, various projects in Iraq. The projects are Indian-assisted oil exploration and refinery construction, but the Agreements also involve aid to other Iraqi industries and agriculture.
The bulk-oil Agreement was signed by Mr. Hammadi and the Indian negotiator Mr. Barua. Iraq is now in a position to benefit greatly from the direct-purchase clauses in the Agreements, having only recently taken over many wells and refineries owned by foreign companies.