India finds a $40bn friend in Iran

[bemildred]

India's oil diplomacy took a giant leap forward on Friday when New Delhi unveiled a multibillion-dollar deal with Iran and Russia that will be crucial to India's long-term energy security, and took the initiative the same week to host the first-ever conference on regional cooperation among Asian oil-producing and consuming countries.

In its US$40 billion deal with the National Iranian Oil Co (NIOC), India committed to import natural gas from Iran over a 25-year period and to develop two Iranian oil fields and a gas field. Iran will sell the liquefied natural gas (LNG) to India at a price linked to Brent crude oil. According to the agreement, India will pay $1.2 plus 0.065 of Brent crude average, with an upper ceiling of $31 per barrel. Iran will ship 5 million tonnes of LNG to India annually, with a provision to increase the quantity to 7.5 million tonnes.

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In March, Beijing and Tehran signed a deal worth $100 billion. Billed as the "deal of century", this agreement is likely to increase by another $50 billion to $100 billion, bringing the total close to $200 billion, when a similar oil agreement, currently being negotiated, is inked. The gas deal entails the annual export of some 10 million tonnes of Iranian LNG for a 25-year period, as well as the participation, by China's state oil company, in such projects as exploration and drilling, petrochemical and gas industries, pipelines, services and the like.

India also confirmed that it is talking to Russia for investing in crumbling oil major Yukos. Officials in New Delhi said ONGC was considering investing $2 billion for a stake in Yuganskneftegaz, the main production unit of Yukos, which was auctioned last month in Moscow in a cloak of mystery. Incidentally, Russia recently offered a 20% stake in Yuganskneftegaz to Sinopec. In the event of both India and China taking shares in Yuganskneftegaz, it would become a triangular Russian-Chinese-Indian collaboration - alongside the envisaged Chinese-Indian-Iranian cooperation in Yadavran.

Asia Times

[daleo]

1. Looks like Bush belligerence is backfiring.

Countries in the region seem to be knitting a web of interests together - perhaps not quite a military alliance but sufficient to send a message. But will PNAC take the hint?

[FlemingsGhost]

3. It doesn't take militray might to tame the U.S. beast ...

Good old-fashioned economic unity will bleed us dry.

[bemildred]

4. He's a uniter, not a divider.

But yeah. This is the opposite of what the analyses I see say
we are supposed to be trying to accomplish. We are doing a good
job of peacefully uniting the Eurasian powers. It's the most
egregious case of shooting yourself in the foot, hoisting oneself
on one's own petard, that I can think of since Napoleon decided he
could take on Russia.

[aquart]

2. Another ally doesn't need us.

Brilliant, Georgie.

[billbuckhead]

5. India's mass producing criuse missiles which will give it control

of the Indian ocean no matter what the US Navy or any other navy can do to stop them.

[aquart]

7. Oh, goody.

[Oversea Visitor]

6. This is just the begining

There is 2 important events on Jan 6th

The Boxer Rebellion
And the Indonesian Donors Nation Summit

I am sure all of you are aware of Bush claim to lead a coalition of nation (India,Australia and Japan for the Tsunami Aid) and also to add UN to this coalition.

Well all the donors nation decide that UN lead. US is being isolated slowly but surely and you all can thanks Bush

[Maple]

8. The 'coalition' was dissolved

and quietly joined the UN.

[Divine Discontent]

9. face it

the world HATES bush, they just try and act diplomatic about negotiations with the US since before the great dumbya, most of our recent leaders have had SOME shred of decency within them....

[Divine Discontent]

10. one thing I can say.....

Pat Buchanan's gotta be happy about all this! :)