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Areas for enhancing co-operation in Oil Sector discussed with Bangladesh and Sri Lanka
New Delhi: June 1, 2004

Shri Mani Shankar Aiyar, Minister of Petroleum and Natural Gas and Panchayati Raj discussed areas of mutual cooperation with the visiting Foreign Minister of Bangladesh here today. In a meeting with Mr. Morshed Khan, Foreign Minister of Bangladesh, Shri Aiyar referred to the proposed natural gas pipeline from Myanmar to India for evacuating gas discovered in A-1 block in Myanmar where ONGC and GAIL have stakes. He also said that enhanced exports of diesel from India to Bangladesh could be considered under a term contract. Shri Aiyar reiterated India’s continued interest for importing gas from Bangladesh, subject to availability of exportable surplus of this energy resource at their end. The Foreign Minister of Bangladesh shared the view that greater cooperation in oil and gas sector between the two countries is in mutual interest and pointed out that India is a natural choice for sale of surplus gas. He also expressed the willingness of Bangladesh to consider the request of India for providing transit right for the gas pipeline from Myanmar to India through Bangladesh subject to mutually acceptable terms.

At a separate meeting with the Foreign Minister of Sri Lanka, Mr. Lakshaman Kadirgamar, areas for greater mutual cooperation were explored to be pursued in future. Sri Lanka expressed desire to import more quantities of petroleum products from India, subject to appropriate terms of contract. Shri Aiyar responded stating that details of the package will be finalized in consultation with the concerned Ministries and the Ministry of Petroleum and Natural Gas would revert shortly. Indian Oil Corporation has already a sizeable presence in the Sri Lankan oil market. BPCL and HPCL have also bid for entry into Sri Lankan retail market.

Press Release: PIB
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