Pradhan speaks to Barkindo on OPEC supplies

India has reiterated its call to the Organization of the Petroleum Exporting Countries (OPEC) for “Responsible Pricing” for crude oil.

Petroleum & Natural Gas Minister Dharmendra Pradhan made the call on 8 Oct 2017 during a meeting with OPEC Secretary General Sanusi Mohammad Barkindo who is in New Delhi the first CERAWEEK India Energy Forum.

OPEC should work towards “Responsible Pricing” which is important for India for socio-economic and developmental reasons, said Pradhan.

He has also emphasized India’s earlier view of ‘Asian Dividend rather than charging Asian Premium’ on the crude supplied to India, pointing out that countries like India should actually be the “preferred destination”.

He suggested that OPEC at its (next) Ministerial meetings give wider consideration to India’s requests.

India’s engagement with OPEC is an important as India sources about 86% of crude oil, 75% of natural gas, 95% of LPG from OPEC member countries.

Pradhan has highlighted that in today’s oversupplied market, it was important for producers to understand the perspective of consuming countries and the changes that have taken place in these demand centers.

In this context, he emphasized the need for a purposeful and improved dialogue among producer and consumer countries.

The two sides discussed the current scenario of oil and gas industry of the world and exchanged notes on the recent developments.

Pradhan said that India is putting a lot of emphasis on diversifying its crude oil supply sources and tapping new supply sources, highlighting the the arrival of two shipments of crude oil cargo of 1.6 million barrels from the United States.

Three Indian public sector refineries have already placed a cumulative order 7.85 million barrel from the US. In addition, a private sector refiner has also placed an order of two million barrel from the US.

Minister was accompanied CEOs of seven public and private sector refineries who together operate all 23 refineries in India processing over 235 MMT of crude annually.

Pradhan has also extended invitation to the OPEC Secretary-General to attend the 16th Ministerial Meeting of International Energy Forum scheduled to take place in India in April 2018. Barkindo has accepted the invitation.

Pradhan last met Barkindo in Vienna in May 2017 for the 2nd India-OPEC Institutional Dialogue. fii-news.com