Pak, Iran to hold talks on IPI

ISLAMABAD: Pakistan and Iran will hold another round of talks within a month on a proposed gas pipeline project involving the two countries and India, including on the sale of oil on deferred payment basis to Islamabad.

"Talks will be held in the next three to four weeks in Islamabad" on the Iran-Pakistan-India (IPI) gas pipeline project, an official in the Petroleum and Natural Resources Ministry told the state-run APP news agency on Friday.

"The upcoming negotiations are aimed at evolving consensus on the gas price fixation formula," he said.

An Iranian delegation led by the country's Oil Minister will visit here to discuss matters related to the supply of oil and gas to Pakistan. The Adviser to the prime minister on Petroleum, Asim Hussain, will lead the Pakistani side in the dialogue.

Iran has agreed to provide 50,000 barrels of crude oil a day on deferred payments for 90 days.

Besides, Pakistan has requested Iran to extend the facility of providing crude oil against deferred payments for a two-year period. The Iranian president has said the government will consider this request.

Pakistan has the facility to process 70,000 barrels of Iranian crude oil a day. The Pakistan Refinery (PRL) currently imports 10,000 barrels of crude oil a day from Iran, while Tehran has already revised the contract to allow the export of 30,000 barrels per day with payments being deferred for 90 days.

This new arrangement is effective from January 1. Pakistan's crude oil requirement is around 202,000 barrels a day.