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The Iranian delegation, led by H.E Dr. M. H. Nejad Hosseinian, Deputy Petroleum Minister for International Affairs, Government of the Islamic Republic of Iran, visited India between 3 - 4 August, 2005 for the first meeting of the India - Iran Special Joint Working Group (JWG) on the Iran-Pakistan-India (IPI) Pipeline Project. The Indian delegation at this meeting was led by H.E Shri S.C.Tripathi, Secretary, Ministry of Petroleum & Natural Gas, Government of India.
H.E Dr. Hosseinian had the honour of calling on H.E Shri Mani Shankar Aiyar, Minister for Petroleum & Natural Gas and Panchayati Raj, Government of India. The Indian Minister conveyed to Dr. Hosseinian and his delegation, the deep commitment of the Government of India to the IPI Pipeline Project which it viewed as an important factor in its energy security interests. Dr. Hosseinian expressed to the Indian Minister the interest of Iran to expand bilateral ties in the hydrocarbon sector and pointed out that the Iranian Government was fully committed to realizing the project as quickly as possible.
While welcoming the Iranian delegation at the commencement of the meeting of the Special JWG, Shri Tripathi noted that cooperation between India and Iran in the hydrocarbon sector was a key element in the development strategies of the two countries. In his response, Dr. Hosseinian expressed that the Government of the Islamic Republic of Iran was very serious about taking the project forward. In this context, he noted the visit of the Iranian technical delegation to India at the end of June 2005 as also the visit of the Iranian Petroleum Minister to Pakistan in July 2005.
The two sides agreed that the regular meetings of the JWG between India and Pakistan on pipeline cooperation and the Special JWG on the Iran - Pakistan - India Pipeline Project, interspersed with regular meetings at ministerial-level, would facilitate the examination of various aspects of the pipeline project which was very important for the interests of the three countries concerned.
Shri Tripathi briefed the Iranian delegation on the first meeting of the India - Pakistan JWG on pipeline cooperation. He informed the Iranian side that India and Pakistan had agreed to appoint financial consultants who would advise their respective Governments on project structure. Shri Tripathi explained to the Iranian delegation the rationale of this proposal: he pointed out that the IPI Pipeline Project was the first transnational pipeline project in which India was actively involved; the financial consultant’s inputs were required to obtain an understanding of the merits and demerits of various alternative project structures as also the attendant technical, financial, commercial and legal aspects of the proposal which would yield a safe and secure world-class project to which all three Governments were committed. Shri Tripathi told the Iranian delegation that the financial consultants, based on a thorough review of international best practices in respect of transnational pipelines, would enable the Indian Government to take a decision on the project structure and India’s role in it. Shri Tripathi said that the Indian side was very hopeful that a “Framework Agreement” between the Governments of India, Iran and Pakistan - would be finalized by the end of the current year. The Iranian side agreed to cooperate with the financial consultant appointed by the Indian Government.
The Iranian side expressed that they would be very happy to see India as a founding member of the international consortium to be set up to handle all aspects of the Project after the Framework Agreement had been finalized.
In order to facilitate the work of the Indian consultants, the two sides agreed that an Indian technical team would visit Tehran in the third week of August to review with the Iranian officials concerned and BHP Billiton the pre-feasibility report prepared jointly by them.
The Iranian side conveyed to the Indian side details of the visit of H.E the Iranian Minister of Petroleum Mr. Bijan Namdar Zanganeh to Pakistan in July 2005, at the end of which an MoU had been entered into between Iran and Pakistan. The Iranian side said that during the visit, the Pakistani authorities had agreed with transit of Iranian gas to India through Pakistani territory. The Iranian side assured the Indian side that, based on current estimates, and taking into account domestic demand, Iran would be in a position to meet the requirements of gas of India and Pakistan through the IPI Pipeline Project. In this regard, they expressed that it was the policy of the Iranian Government to give priority to export of gas to Iran’s neighboring countries.
The two sides examined in detail the various issues pertaining to the Heads of Agreement and noted with satisfaction that considerable progress has been made in addressing the relevant issues. They agreed that the remaining issues would be most effectively addressed once the project structure had been agreed to between the three Governments later this year.
In order to carry forward the consultation process pertaining to the IPI Pipeline Project, the two sides agreed on the following roadmap:
(i.) The Indian technical team would visit Tehran in the third week of August 2005 to review the pre-feasibility report prepared jointly by NIGEC and BHP Billiton.
(ii.) The next meeting of the India - Iran special JWG would be held in Tehran by the end of September 2005.
(iii.) On the basis of the recommendations of the financial consultants, there would be a preliminary understanding on the preferred project structure by early November 2005. In this context, subject to mutual convenience, H.E the Iranian Minister of Petroleum, would visit India at this time.
(iv.) Once there was agreement on the project structure between the three countries, the trilateral framework agreement would be finalized by the end of the current year.
RCJ/KC/ jwg meeting on gas pipeline (4.8 2005)
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